EU is setting conditions for Ukraine

foxnews


Photo. Martin Schulz/Flickr/CC BY-NC-ND 2.0 DEED

EU representatives have reportedly informed the Ukrainian authorities that before releasing further financial funds, Kyiv is expected to progress with legislation aimed at curbing the shadow economy, increasing tax revenues, and aligning Ukrainian law with EU standards.

As reported by Bloomberg, after more than four years of the full-scale Russian invasion, tensions are beginning to mount in the relationship between Kyiv and its key partners. On one hand, Ukraine is frustrated by the reluctance of some European allies to provide expensive air defence interceptor missiles; on the other hand, European nations are increasingly feeling the costs they incur by continuing to support Kyiv.

The Union intends to link the provision of additional financial support to Ukraine with progress in reforms, including measures to reduce the shadow economy, increase tax revenues, and harmonise Ukrainian legislation with EU norms. “More defence support is coming. And as reforms in the Rada progress, more budget support too. We have €37 billion still available in this calendar year,” wrote Ursula von der Leyen on the X platform, referring to the next disbursement of the EU loan for Ukraine.

Kyiv has approached its Western partners with a request for assistance in covering a budget gap of approximately €26 billion and for accelerating the disbursement of further funds from a €90 billion EU loan. These funds are intended to secure Ukraine’s financing until the end of next year. Brussels is questioning the transfer of further funds and suggests that additional support should be provided by, amongst others, Canada, Norway, and Japan.

The Union’s observations and requirements are justified. Thus far, the West has provided Ukraine with significant funds; however, the internal political situation and the approach to the rule of law have remained at a similar level since the start of Russia’s full-scale aggression in February 2022. Legal changes (and their enforcement) would contribute to a better allocation of the aid received and the reduction of corruption.