The EU might reduce Ukraine’s aid by €1.45B over missed reform deadlines.

According to European Commission spokesman Guillaume Mercier, the fourth installment of financial aid to Ukraine in 2025 under the Ukraine Facility mechanism, which Ukraine requested in June, will be smaller than planned because Ukraine has not completed 3 of the 16 required reforms.

This tranche is the largest both in terms of money at stake and in the number of reforms required. If all reforms are completed, Ukraine would receive €4.5B. Mercier noted that the EC has approved 13 reforms and suggests that the EU Council make a payment of €3.05B to Ukraine in August. He added that of the three reforms not yet implemented, “one concerns decentralization, the other – the law on the reform of ARMA, and the third – the selection of judges for the High Anti-Corruption Court.”

The NYT writes that this decision is not final, and funding could be restored if Ukraine reaches certain milestones. Meanwhile, the Ministry of Economy stated that Ukraine is meeting its obligations to the EU, and the last three indicators are nearly complete. Once these are achieved, Ukraine will receive the remaining €1.45B. The department remains confident that Ukraine will get the full amount of the planned €12.5B through the Ukraine Facility this year.