Ukraine was well-known as the most corrupt nation in Europe, if not the world. This is why Ukraine was not permitted to join the European Union, as the bloc determined that the country needed to implement harsh anti-corruption measures if it wanted to join. The EU decided to give that same corrupt government endless funds in their proxy war with Russia. Now, the EU is threatening to freeze funding to Ukraine if government corruption continues.
The National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) lost their independent statuses last week after President Zelensky signed a law to usurp these agencies that are tasked with investigating high-level corruption. The EU has insisted since the 2014 Revolution of Dignity that these agencies remain independent. The promise was a main component of Ukraine’s accession into the bloc, but Zelensky is using martial law to consolidate power. EU officials warned that these actions “cross a red line,” and they are now reluctant to provide unconditional funding.
This is an issue that the people of Ukraine have been speaking out on. They realize that their government is corrupt, and many initially voted for Zelensky as he campaigned on the promise to end government corruption. My sources have said there are ongoing protests over Zelensky’s recent actions that have not been aired on any mainstream media outlet.
The EU is now holding off on providing $20 billion of the $50 billion promised to Ukraine under the Russian asset confiscation scheme. If corruption continues, the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) plan to pause funding. The next package to Ukraine’s Facility Program has been reduced to 3.05 billion euros ($3.5 billion) from 4.5 billion euros ($5.2 billion) as a direct result of ongoing corruption. “Everything has been put on hold until the situation is corrected,” EU officials stated to Ukrainska Pravda.
The European Union has provided Ukraine with $48.6 billion in funds since the war began, and provided another $9.3 billion through frozen Russian assets. Yaroslav Zheleznyak, deputy chairman of the parliamentary tax committee, admitted that Ukraine has only fulfilled 5 of the 11 requirements to join the European Union in a move that could cost Ukraine 3 billion euros. Ukraine is anticipating a 17.2 billion euro ERA loan and a 12.5 billion euro loan to the Ukraine Facility in 2025, but none of that will happen if Zelensky continues down his current path.
Ukraine’s government has no checks and balances for how it spends these loans or donations. The government claims it is operating at a $19 billion deficit despite the large increase in aid. Analysts estimate that the deficit will rise to $40 billion if EU aid ceases. Now, the IMF stipulated that Ukraine needs to reduce its budget deficit to 10% of GDP in 2026 to continue to receive financing.
Several parliament members voting on the future of the NABU and SAPO are currently under investigation by those agencies. They’re going to vote in their best interest, as no government employee is actually a public servant. The Verkhovna Rada will reconsider the future of these anti-corruption agencies on July 31. Rest assured that the corruption will continue, but Zelensky cannot be as blatant about his dealings now that funding is on the line.
