Why Did The EU Suspend $1.7B In Aid To Ukraine? Explained

As Ukraine continues to face missile and drone onslaught from Russia, it’s closest partner European Union has decided to suspended near two billion aid after President Volodymyr Zelensky signed a controversial bill reportedly argeted at curtailing the independence of the country’s top anti-corruption agencies.

According to the reports, the suspended $1.7 billion, represents more than a third of the aid under the EU’s Ukraine Facility fund.

The fund was established by EU to support Ukraine’s recovery from the war and to help meet governance required for future EU membership.

What is The New Law That Landed Volodymyr Zelensky’s Ukraine in Trouble?

The new legislation gives more power to Ukraine’s prosecutor general who is an official appointed through political processes. The prosecutor general will have powers over two key anti-corruption bodies – the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO). Both of these agencies were created following Ukraine’s 2014 “Revolution of Dignity” to root out systemic corruption in government.

Since it’s approval, th law has been widely criticized inside Ukraine and internationally also. The mounting criticism pushed President Zelensky to introduced new measures to safeguard the independence of NABU and SAPO.

Volodymyr Zelensky Faces Backlash, Protests Erupt in Ukraine

Kyiv witnessed protest last week against the legislation. The protests are significant because these mark the first public demonstration against Zelensky’s administration since the Russian invasion began in 2022.

Thousands took to the streets to demand the autonomy of anti-corruption agencies be preserved. Protests argue that weakening institutions could compromise Ukraine’s fight against Russia by undermining internal governance.

Critics argue that internal corruption continues to threaten Ukraine’s national security. “The rampant corruption in Kyiv is hurting the nation’s ability to defend itself,” said one protester, reflecting the sentiments echoed by demonstrators and civil society.

Is Volodymyr Zelensky Interfering in Ukraine’s Democratic Institutions?

The EU has said that the decision to withhold the funds is not final. EU officials stated the funds can be reinstated if Ukraine meets governance benchmarks.

Marta Kos, the EU’s commissioner for expansion, said the bloc is “seriously concerned” about political interference in agencies charged with prosecuting corruption.

 Zelensky has offered his justification for the bill. President has highlighted the concerns of “Russian influence” within the NABU and SAPO, as well as delays in high-profile cases.

However, critics and protestors see the legislation as retaliation against agencies that had begun probing Zelensky’s allies, including former Deputy Prime Minister Oleksiy Chernyshov.

Volodymyr Zelensky Faces International Pressure

British Prime Minister Keir Starmer was among global leaders who reached out to Zelensky, urging him to reconsider the bill and uphold the integrity of Ukraine’s anti-corruption drive. The international community has consistently linked financial assistance to Kyiv’s reform efforts.

The pressure doesn’t end with the EU. Ukraine also faces an imminent deadline from the International Monetary Fund. Kyiv has until Thursday to appoint a head of its Economic Security Bureau, a requirement for continuing to receive disbursements under a $15.6 billion IMF aid package pledged over four years.

Zelensky has so far refused to appoint Oleksandr Tsyvinskyi, who led the corruption case against Chernyshov, as head of the bureau, despite his nomination by an independent commission.