EU Cuts Off €1.5B in Ukraine Funding in Corruption Stand Off With Zelensky

Well, how about that? After whipping everyone into shape and basically forcing member nations to take out payday loans to beef up their individual defense postures as well as keep the money flowing to Ukraine, there seems to have been a burp.

The European Union pledges of up to $60M over the next three years to help the country with war recovery and to prepare it for EU membership did come with some significant strings attached and milestones to be met in order for the spice to flow.

Earlier this week, the Ukrainian parliament passed a bill – which President Volodymyr Zelensky subsequently signed – that would put control of the country’s two ‘independent’ anti-corruption agencies now performing that function under the auspices of a single presidentially-appointed ‘prosecutor general.’

Ukraine’s parliament sent jitters through Brussels this week with the passage of a bill which would strip independence from two anti-corruption bodies – the National Anti-Corruption Bureau of Ukraine (NABU) and the Special Anti-Corruption Prosecutor’s Office – and would put them under the direct control of a presidentially-appointed role. European establishmentarians were aghast at the bill, with one official calling the bill’s passage “a serious step back.” Voices inside Ukraine, such as the Kyiv Independent, said it was “destroying independence” for investigators. President Volodymyr Zelensky, however, signed the bill, launched and passed primarily by his party, Servant of the People, later that day.

This has upset the EU’s equilibrium concerning those strings related to the ongoing corruption issue that has always plagued Ukraine, as one of the requirements was the ‘decentralization’ of executive power. This new law grants Zelensky even more control, and, most concerningly to Brussels, particularly over the corruption investigations. Ergo, they reacted accordingly by snipping back one of the payments.

Brussels has proposed freezing €1.5 billion in EU funds to Ukraine after Kyiv fell short on implementing reforms linked to tackling corruption and the rule of law.

Ukraine has completed 13 out of the 16 measures previously agreed under the €50 billion Ukraine Facility, which was set up last year to support the war-torn country’s reconstruction. This means it will now receive €3 billion instead of the expected €4.5 billion in the next quarterly payout, said European Commission spokesperson Guillaume Mercier.

The missed reforms include the failure to pass laws relating to the “decentralisation” of executive power and the Asset Recovery and Management Agency (ARMA), a body tasked with tracking down assets acquired through corrupt or otherwise illegal means, Mercier said. They also include measures relating to the selection of judges to the country’s High-Anti-Corruption Court, he added.

EU suspends $1.7B in aid to Ukraine after Zelensky curbs watchdog agencies https://t.co/FFhaP7CAvf pic.twitter.com/bmnf4sfTiV

— New York Post (@nypost) July 27, 2025

The EU does have cause for concern that the ‘independence’ of the agencies is being curtailed because they’ve gotten too aggressive with some of Zelensky’s associates.

…Marta Kos, the EU’s commissioner for expansion, said the bloc was “seriously concerned” over Ukraine’s move to inject political influence into the two agencies tasked with prosecuting corruption at the highest level.

…The NABU and SAPO were established after Ukraine’s “Revolution of Dignity” in 2014, when leaders promised the public to weed out decades of corruption in Kyiv after ousting pro-Russian President Viktor Yanukovych.

Zelensky had vowed to keep the anti-corruption efforts going through his administration, but his criticism over the agencies grew louder when they began investigating and charging people inside his inner circle, including former Deputy Prime Minister Oleksiy Chernyshov.

The president initially claimed that a tighter leash was needed against the NABU and SAPO to rid the two agencies of “Russian influence” and to address why some cases have been stalled for years.

For Zelensky’s sake, he claims Russians have infiltrated the agencies, and it’s the will of the people that he reins them back in, but passing the bill caused the first large-scale, anti-administration demonstrations since the war began (Those are outlawed thanks to the wartime crackdown.). I think the old ‘the people demand this’ is ringing a bit hollow.

…Zelenskyy signed off on the widely criticised law on Tuesday, the same day it was passed by parliament, prompting a steely response from the EU and G7.

The law sparked the first major protest in Kyiv since Russian troops invaded in 2022, with over 1,000 people taking part.

Large gatherings are banned under Ukraine’s martial law.

In fact, Zelensky’s supporters are warning that, should a political crisis arise because of conflict over the new legislation, it will only benefit the Russians.

…Instead, supporters of the law warn that a political crisis over the legislation could work in Russia’s favour by undermining unity in the country.

That has a familiar sound to it, too. ‘If you dare to [insert objection], PUTIN WINS!‘ Oh, yeah. We heard that bunches.

Kyiv is also under another financial deadline related to corruption investigations that they have yet to act on, and time is ticking. The International Monetary Fund (IMF) isn’t cutting the Ukrainian government another check until they have a name for another vacancy in the Zelensky government. The one person who was nominated also happens to be the individual who went after a close Zelensky associate.

…Kyiv also has until Thursday to appoint a head of its Economic Security Bureau to continue receiving assistance from the International Monetary Fund (IMF).

The IMF had vowed to provide Ukraine with $15.6 billion in aid to be distributed over four years as long as Kyiv moves forward with its anti-corruption campaign.

Zelensky had previously refused to appoint Oleksandr Tsyvinskyi, the man who led the case against Chernyshov, as the head of the bureau despite a nomination from an independent commission.

The position remains open, with no word yet on who would fill it.

It’s not like that country’s so great at keeping track of what they do get to begin with.

E.U. Cuts $1.7 billion in Aid to Ukraine Over Corruption Concerns

Remember when Zelensky said he doesn’t even know where $100 Billion is of the money that the U.S. gave him??? pic.twitter.com/MNDbpDbtwR

— Libs of TikTok (@libsoftiktok) July 29, 2025