Bloomberg: EU refused to accelerate payments to Ukraine and demanded reforms
The European Union is not yet ready to transfer to Ukraine ahead of schedule part of the funds provided for in the 2027 loan program. Brussels believes that Kyiv must first implement the agreed reforms and unlock a significant volume of funding already available to it in 2026.
Bloomberg reported this. The European Commission's position is also confirmed by its official statements in recent days. On September 29, an EC spokesman emphasized that the main task now is to bring the payments to Ukraine under the 2026 loan from the already transferred around 15 billion euros to the planned 45 billion euros.
This concerns the Ukraine Support Loan program with a total volume of 90 billion euros for 2026–2027. It provides for about 60 billion euros for defense needs and 30 billion euros for budget support. For 2026, Ukraine has access to up to 45 billion euros, and a similar volume is planned for the next year.
Amid growing financial needs, Ukraine proposed moving forward part of the funds planned for 2027 and receiving them earlier. However, the European Commission made clear that it does not consider such a step a priority: a large amount already provided for the current year remains unused precisely because of unmet conditions.
"At the moment, if we look at the 90 billion euro loan, we see that we were able to transfer 15 billion euros to Ukraine, while the goal is 45 billion. This is a significant gap, and we need to focus on reaching 45 billion," — explained an EC spokesman at a briefing on September 29.
Brussels recognizes that Ukraine must carry out reforms during a full-scale war, but emphasizes that the list of specific conditions was agreed in advance, and the fulfillment of these obligations is directly linked to the release of the next tranches.
In total, we are talking about nearly 20 billion euros in financing, access to which depends on reforms. About 13.5 billion euros come under the Ukraine Support Loan, and another 6.45 billion euros under the Ukraine Facility program. In late September, the EU agreed to pay 2.9 billion euros, but another tranche of about 3.9 billion euros is delayed due to the absence of necessary legislative decisions.
European Commissioners Valdis Dombrovskis and Marta Kos sent a letter to Verkhovna Rada Chairman Ruslan Stefanchuk because of the delays. They stressed that timely adoption of legislation is necessary simultaneously for receiving European funding, maintaining Ukraine's momentum toward EU accession, and strengthening public finances.
Among the reforms Brussels expects are changes to the civil service, the state aid system, anti-money laundering, and disciplinary liability of prosecutors. Some draft laws are already in parliament, while others still need to be introduced. The EU also expects changes to small and medium business bankruptcy rules and tax legislation.
Separate conditions are linked to macro-financial assistance. In early September, the Ukrainian government submitted four draft laws to the Verkhovna Rada that are necessary to receive a 1.45 billion euro tranche. They include changes to VAT administration, transfer pricing, capital market regulation, and the work of the High Anti-Corruption Court.
The EU loan itself has already started working. The European Commission transferred the first budget support tranche of 3.2 billion euros on June 25. Payments under the defense component then began. After the next payment of 3.3 billion euros on September 18, the total amount transferred in 2026 approached 15 billion euros.
The financial situation is becoming especially important in the context of Ukraine's needs for next year. According to the Ministry of Finance, the country will need about 52.6 billion dollars in external financing in 2027. Expected sources have been identified for about 20 billion dollars, while about 32.6 billion dollars remain uncovered.
Even the full provision of the 90-billion-euro EU loan does not cover all of Ukraine's financing needs. The European Commission estimates an additional gap of about 45 billion euros and calls on other international partners to increase their commitments. Brussels has also begun discussing with Kyiv a financial strategy for 2027 that should define the allocation of funds between budget support, the Ukraine Facility, and the defense component.
Thus, the EU is not abandoning financing for Ukraine and remains committed to providing up to 90 billion euros in 2026–2027. However, Brussels is not yet ready to bring forward a significant part of future payments to an earlier date and demands first that the conditions necessary to receive the funds already planned for 2026 be met.
Based on: Bloomberg, European Commission, Ministry of Finance of Ukraine
