EU Slashes $1.7BN In Aid To Ukraine Over Corruption Concerns
James Wasserstrom, an American anticorruption expert, said in an interview that 'the luster is definitely coming off' Mr. Zelensky's wartime leadership among governments providing financial assistance. He added, 'There is exasperation at Zelensky in the donor community.'
Early last week, there were unexpected images coming from Kiev of the largest demonstrations against the Ukrainian government since Russia invaded more than three years ago, as more than 2,000 people gathered near the president's office, shouting 'shame' and 'veto the law,' after President Zelensky signed a law gutting the country's anti-corruption agency.
This was enough to get the attention of Kiev's biggest donors, and days later on Friday the European Union announced it would suspend part of a €4.5 billion fund tied to good governance standards, with the NY Times reporting that the bloc has frozen €1.5 billion (about $1.7 billion) in financial aid to Ukraine over concerns about corruption and delays in key reforms.
The decision is said to not be 'final' yet, and on Sunday President Zelensky held a crucial call with President of the European Commission Ursula von der Leyen. His office confirmed they discussed Ukraine's anti-corruption system (…or we should say lack thereof).
What is tantamount to EU sanctions being on the table would impact access to the funding, dependent on Ukraine meeting specific reform requirements known as 'progress benchmarks.'
One critical unmet benchmark is the appointment of judges to the High Anti-Corruption Court, which is supposed to be an independent judiciary apparatus given the power to spotlight and battle elite corruption.
The EU has also raised concerns about a lack of transparency and slow progress in the area of judicial reforms. This rare backlash from close allies with the deepest pocketbooks marks a huge blow to Zelensky – who has also kept himself in power way past his term mandate (citing the war with Russia) – after he pushed legislation through the Verkhovna Rada seen as greatly underminng the independence of two key anti-corruption bodies: the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO).
Critics have increasingly highlighted that these actions have come in unison with other martial law policies during the war, including the silencing of journalists, civil society activists, the suppression of the Russian language, the persecution of the Orthodox Church, as well as the wholesale banning of opposition parties.
The New York Times comments as follows:
The two agencies — the National Anticorruption Bureau of Ukraine and the Specialized Anticorruption Prosecutor's Office — had been investigating top ministers in the Zelensky government. The president's decision to kneecap them, though reversed, prompted accusations of cronyism that jeopardized backing from civil society groups at home and Western nations bankrolling the war.
The European Union established this aid mechanism, the Ukraine Facility, last year and promised 50 billion euros over three years for repairing war damage and preparing the country for E.U. accession. The European Commission spokesman, Guillaume Mercier, told journalists in Brussels on Friday that Ukraine had requested a disbursement in June despite falling short on three of 16 benchmarks, including failing to make appointments to a specialized anticorruption court.
Further, the reported noted 'That court tries cases brought by the two agencies whose independence Mr. Zelensky threatened this week.'
🇺🇦 #Ukraine: Thousands of protesters have defied wartime restrictions in central Kyiv, rallying against President Zelensky's decision to strip the country's independent anti-corruption agencies of their autonomy. This marks the largest protest of wartime Ukraine, triggered by… pic.twitter.com/jm8vMZ14Yw — POPULAR FRONT (@PopularFront_) July 22, 2025
Even British prime minister Kier Starmer has reportedly phoned Zelensky's office this past week to discuss his latest moves regarding corruption investigations. And when you've potentially lost the Brits and Europeans, your wartime star power has most definitely faded.
President Putin and Kremlin officials are sure to seize on the anti-Zelensky momentum diplomatically, as they engage Trump officials behind the scenes as part of ongoing bilateral talks. Trump has of course never been a close friend of 'the world's greatest salesman' Zelensky – and could be ready to dump him especially if the mood turns drastically in Europe.
Also read: Orbán: 20% Of EU's New 7-Year Budget Would Go To Ukraine, 10-12% Goes To Debt Repayments
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