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EU Threatens to Suspend Financial Support if Ukraine Delays Anti-Corruption Reforms
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![Photo of Cyril Barabaltchouk]( "Photo of Cyril Barabaltchouk")
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The European Union has delivered a stern warning to Ukraine, urging the government to restore the independence of the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAP), or face a suspension of financial support. This was conveyed through diplomatic channels ahead of a key parliamentary vote scheduled for July 31, European Pravda reported on July 29.
Several sources within the Ukrainian government and parliament, as well as from EU institutions, confirmed to European Pravda that Brussels is preparing for a scenario where the Ukrainian parliament fails to pass legislation that fully restores the independence of these anti-corruption bodies, or introduces amendments that undermine the integrity of the reform.
According to an article in Ekonomichna Pravda, EU representatives conveyed through diplomatic channels to the Ukrainian government on July 24 that they were halting all financial assistance to Ukraine until the situation is rectified. "Everything has been put on hold until the situation is addressed," one source said.
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An EU official familiar with the communication confirmed the warning. "Yes, the EU has indeed warned Kyiv. If the law is not passed, credits from Russian asset profits under the ERA program will cease,” they said.
“We will simply stop providing them. Financing from the EBRD and EIB will also halt," the official told European Pravda, speaking on condition of anonymity.
However, according to European Pravda, it is not expected that payments under the Ukraine Facility program, which provides macro-financial assistance tied to reforms, will be frozen. The EU recently approved a reduced fourth tranche for this program, with Ukraine set to receive €3.05 billion in August due to partial completion of reforms.
These funds are not subject to a possible freeze but will be disbursed at a reduced amount. Further delays in implementing the reforms outlined under the Ukraine Facility could lead to additional reductions in future payments.
The EU has also begun raising concerns about other related reform actions, including the appointment of the head of the Bureau of Economic Security (BEB), following the results of the recent competition, sources confirmed.
In Brussels, EU officials stressed that Ukraine must understand the consequences if Kyiv is unable to reverse the rollback of anti-corruption reforms that took place last week, the vote on return of independence to NABU and SAP is scheduled to take place on July 31 and will have decisive effect on Ukrainian relationship with EU, among other things.
Earlier, it was reported that the EU welcomed Zelenskyy’s new anti-corruption plans and urged Ukraine to address concerns.
