The European Union has warned Ukraine about the potential reduction of financial support if the Verkhovna Rada does not repeal the provisions of Law No. 12414 this week, which limit the activities of the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAP).
This is reported by Finway
Funding at Risk: Which Programs May Be Affected
If the EU’s requirements are not met, Kyiv risks losing access to loans funded by the profits from frozen Russian assets under the ERA program. Further funding from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) is also in question.
At the same time, it has been reported that payments under the Ukraine Facility program will not be frozen. In August, Ukraine will receive 3.05 billion euros instead of the previously expected 4.5 billion euros.
“The EU has conveyed a warning to Kyiv through diplomatic channels about the possible reduction of funding if parliament does not fully repeal the provisions of Law No. 12414 this week, which limits the powers of the National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor’s Office.”
Negotiations with the IMF and Upcoming Reforms
The International Monetary Fund (IMF) and Ukraine are preparing to launch a new four-year funding program, with negotiations scheduled to begin in the fall. The new program aims to create more opportunities for achieving macroeconomic stability, which remains a priority for the IMF.
The focus of the new document will be on reforming executive power institutions, particularly the appointment of the head of the Bureau of Economic Security, customs reform, and measures to mobilize internal financial resources. A separate item in the program may be the guarantee of independence for NABU and SAP. The possibility of transferring a tranche of 4.79 billion dollars, which Ukraine was supposed to receive before the completion of the current program in March 2027, into the new cooperation program is also being considered.