The European Union has delivered a warning to Kyiv via diplomatic channels, stating that if the Ukrainian parliament fails to fully revoke the provisions of law No. 12414, financial support will be suspended.

Source: Ekonomichna Pravda sources within the Ukrainian government and parliament; European Pravda citing sources in EU institutions

Details: EU officials are preparing for a scenario in which, on Thursday 31 July, during a vote in the Verkhovna Rada (Ukraine's Parliament), MPs either fail to pass any legislation restoring the independence of the National Anti-Corruption Bureau (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAPO), or adopt amendments that result in only partial restoration.

As reported by Ekonomichna Pravda, "on 24 July, EU representatives informed PM Svyrydenko’s government via diplomatic channels that they are suspending all financial aid to Ukraine." "Everything is on pause until the situation is rectified," one source stated.

An EU official involved in this communication confirmed to European Pravda that Brussels has indeed issued a warning to Kyiv but clarified the scope of the freeze: "Yes, the EU has warned Kyiv. If the law is not passed, loans financed through revenues from frozen Russian assets under the ERA programme will stop – we will simply stop disbursing them. Funding from the EBRD and EIB will also be suspended," the official stated on condition of anonymity.

At the same time, European Pravda’s sources say the Ukraine Facility programme, which provides macro-financial aid linked to reforms, is not expected to be frozen. The EU recently approved the fourth tranche under this programme, although in a reduced amount. In August, Ukraine is expected to receive €3.05 billion instead of the expected €4.5 billion due to reform delays. This tranche is reportedly not subject to further freezes, but since it is already reduced, any further reform delays as defined by the Ukraine Facility conditions may result in future cuts.

The EU has also begun raising concerns about other reform-related matters, including the appointment of the head of the Bureau of Economic Security based on the results of a completed competitive process, several sources told European Pravda.

Brussels believes Ukraine must understand the consequences if Kyiv fails to reverse last week’s rollback of anti-corruption reforms.

Background: In July, despite expectations of positive decisions from the EU, Kyiv initiated what some view as a retreat from anti-corruption measures. 

Support Ukrainska Pravda on Patreon !