EU to cut next aid tranche for Ukraine: Reasons and new amount revealed
Photo: European Commission spokesperson Guillaume Mercier (ommission.europa.eu)
The European Union will significantly cut the next tranche under the Ukraine Facility program. The official reason cited is Ukraine's delay in implementing reforms, but a recent anti-corruption scandal may have also influenced the timing of the payment, according to the comments from European Commission spokesperson Guillaume Mercier and sources within the Ukrainian government.
What the European Commission says about the next tranche
According to Mercier, Ukraine submitted a payment request on June 6 for a partial disbursement — €3 billion instead of the expected €4.5 billion. The European Commission reviewed the request and submitted a proposal to the EU Council at the end of June.
Mercier stated that the fourth payment is the largest in terms of both amount and the scope of required reforms. He explained that if all benchmarks had been met, Ukraine would have received €4.5 billion, which required the implementation of 16 reforms. In its request, Ukraine reported that it had completed 13 out of the 16 required reforms.
He added that the Commission evaluated the 13 completed reforms and proposed a disbursement of €3.05 billion as the fourth tranche under the Ukraine Facility.
Work on the remaining three reforms is still ongoing. These include the law on the territorial organization of executive authorities (known as the decentralization reform), the reform of ARMA (the Asset Recovery and Management Agency), and the selection of judges for the High Anti-Corruption Court.
Mercier also noted that, according to the partial payment methodology adopted earlier in 2025, if a reform is not completed on time, the corresponding amount is withheld for up to 12 months, during which the reform may still be implemented and the related funds disbursed.
Did Ukraine lose €1.5 billion? What sources say
A government source confirmed to RBC-Ukraine that the fourth tranche under the Ukraine Facility will amount to €3.05 billion. The funds will be transferred after the corresponding decision by the EU Council.
Another informed source noted that the size of the fourth payment will indeed be smaller than initially expected.
"Not €4.5 billion. But even a smaller amount will be delayed until issues regarding NABU and SAPO are resolved, particularly the restoration of their independence," the source emphasized in a comment to RBC-Ukraine.
In addition, if all conditions are met, the missing €1.5 billion could still be disbursed by the end of the year. In other words, Ukraine could receive the full amount if the necessary reforms are completed in time and there are no further disputed issues, the source added.
What is the Ukraine Facility
The Ukraine Facility is a financial instrument established by the European Union to support Ukraine during the war and throughout the post-war recovery period. The program allocates €50 billion for the period of 2024–2027.
The funds are provided in the form of grants and loans, aimed at macro-financial assistance, reconstruction, reforms, and modernization. The use of the funds is monitored through a special mechanism for reporting and assessing reform progress.
European Commission President Ursula von der Leyen stated that the EU has planned €100 billion in its long-term budget for 2028–2034 to support Ukraine. These funds will be allocated through the Ukraine Facility.
In early April of this year, Ukraine received another tranche of assistance under the Ukraine Facility program. The amount of support was €3.5 billion (approximately $3.79 billion).
