EditEU threatens Kyiv with suspension of €50 billion over controversial anti-corruption reform
The financial support will be withheld unless the country’s parliament secures enough votes to repeal the law
The European Commission has issued a warning to the Ukrainian authorities over the potential suspension of financial aid amounting to €50 billion due to legislation that strips Ukraine’s National Anti-Corruption Bureau (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAPO) of their independence.
The news was reported by several European outlets, including European Pravda, a partner of EUalive.
The European Commission’s notification to the authorities in Kyiv spans two pages, with sources in the Ukrainian government and the Verkhovna Rada confirming the information to European Pravda.
The financial support will be withheld unless the country’s parliament secures enough votes to repeal the law.
European officials are preparing for a scenario in which, on Thursday, 31 July, during a vote in the Rada, deputies either fail to adopt any of the draft laws restoring the independence of NABU and SAPO, or introduce amendments that render such restoration incomplete.
“On 24 July, EU representatives informed the Svyrydenko government via diplomatic channels that they were suspending the allocation of all financial assistance to Ukraine. Everything has been put on hold until the situation is rectified,” European Pravda sources reported.
An EU official involved in the communication confirmed to European Pravda that Brussels had indeed issued a warning to Kyiv, clarifying the specifics of the freeze.
“Yes, the EU did indeed warn Kyiv. If the law is not passed, loans derived from profits on frozen Russian assets under the ERA programme will cease – we will simply stop disbursing them. Financing from the EBRD and EIB will also be halted,” an EU representative confirmed on condition of anonymity.
At the same time, according to European Pravda, no suspension is currently expected regarding payments under the Ukraine Facility programme, through which Kyiv receives macro-financial assistance tied to progress on reforms.
Recently, the EU approved the fourth tranche under this programme in a reduced amount.
Ukraine is expected to receive €3.05 billion in August instead of the anticipated €4.5 billion, owing to reform setbacks. These funds are reportedly not subject to the freeze, but they will be disbursed in a smaller amount than initially planned. Moreover, delays in implementing other reforms required under the Ukraine Facility could result in further reductions in subsequent tranches.
The EU has also begun raising concerns regarding other reform-linked actions, including the appointment of the head of the Bureau of Economic Security (BEB) based on the results of a competitive selection, several sources in the European Parliament have confirmed.
Zelenskyy under fire at home and abroad
Brussels maintains that Ukraine must grasp the consequences should Kyiv fail to reverse last week’s rollback of anti-corruption reforms. In July, despite anticipating positive decisions from the European Union, Kyiv launched an offensive against the reforms.
NABU and SAPO were established roughly a decade ago on the recommendation of Western countries.
Last week, Ukrainian President Volodymyr Zelenskyy signed a law that restricts the powers of the anti-corruption agencies and effectively places them under the authority of the Prosecutor General’s Office. Both agencies have warned that this move destroys their autonomy.
Zelenskyy’s decision sparked protests across Ukraine, with citizens taking to the streets in most major cities to demand the repeal of the law. The EU publicly voiced concern over its adoption.
Ukraine’s wartime protests signal growing dissent against Zelenskyy’s anti-corruption rollback
Subsequently, Zelenskyy stated that he respects the opinion of the people and sees it as natural to respond when “people don’t want something”.
He submitted a draft bill to the Verkhovna Rada aimed at providing NABU and SAPO with “full guarantees of independence for the anti-corruption agencies”. Parliament is expected to vote on the initiative, but the Rada is in recess until 19 August.
Civil protests and Western pressure force a U-turn
In a commentary published by European Pravda, it is noted that the events of the past week have marked a real watershed moment for many Ukrainians and for Ukraine’s friends abroad.
The shock provoked by the president and his team’s attempt to “kill” the independence of NABU and SAPO, the overwhelming support for this law in the Rada, and the manner in which it was adopted, quickly gave way to the expectation that the Ukrainian authorities would correct their error.
Not only have opposition deputies responded, but the president himself has submitted a bill to parliament to repeal the scandalous provisions.
The Speaker of the Rada has scheduled an extraordinary parliamentary session for 31 July. Meanwhile, the pro-presidential deputies who just days ago voted in favour of the assault on NABU are now posting online that they made a mistake and are ready to rectify it.
“But we must not forget what occurred between these events—what forced Kyiv to concede. After all, the initial actions and statements by Ukrainian officials, including the president, suggested that such a reversal was not initially intended,” the Ukrainian outlet writes.
There are two reasons that compelled Zelenskyy to reverse course and agree to repeal the law that gravely jeopardised Ukraine’s European future. The most obvious was public pressure. The spontaneous turnout of thousands of people in city squares and streets nationwide, demanding that the president – and the government more broadly, halt the blatant attack on anti-corruption institutions and democracy, caught the president’s office by surprise.
“There was another, perhaps even more significant, reason for Zelenskyy’s U-turn: pressure from Western partners. What truly shocked the president and government was the unified condemnation of the attack on NABU by European partners, and to a lesser extent, by the United States,” European Pravda observes.
Caption: Ukrainian people attend a protest against the restriction of the autonomy of Ukrainian anti-corruption authorities in Kyiv, Ukraine, 24 July 2025. EPA/SERGEY DOLZHENKO
Updated: July 29, 2025 - 16:26
