EU clears 3 billion euros for Ukraine after Kyiv passes reforms

On September 23, European Union ambassadors confirmed to Brussels that Ukraine had successfully completed ten different reforms, paving the way for Kyiv to receive three billion euros in financial aid. This decision followed a meeting between EU Commission President Ursula von der Leyen and President Volodymyr Zelensky, during which the former emphasized that Ukraine must unlock a total of 37 billion euros by 2026 by implementing previously-agreed reforms.

The reforms, part of the Ukraine Plan, encompassed a wide range of changes aimed at advancing Ukraine's bid for EU membership, enhancing the functioning of state institutions, and unlocking financial support from the bloc. Among the approved reforms were updates to judges' integrity declarations, the appointment of a new electricity market operator, efforts to address the gender pay gap, and legislation to improve traffic safety.

While Ukraine's pace of reform has lagged behind the deadlines set out in the plan, the payment request made by Kyiv this time included a mix of overdue and completed reforms. President Zelensky highlighted a budget shortfall of $27 billion for 2026, and the EU frequently stresses the importance of reforms in unlocking funding.

The previous week, EU Economy and Enlargement Commissioners Valdis Dombrovskis and Marta Kos appealed to the parliament to expedite the process, noting that over 20 billion euros could be released by year-end if all Ukraine Plan commitments are fulfilled. These funds are contingent upon meeting the conditions set by another major donor, the International Monetary Fund.

The commissioners also provided an annex detailing 21 specific reforms, including an anti-corruption strategy, simplifying VAT administration for individual entrepreneurs, and measures to prevent money laundering.