The European Union transferred €4.05 billion ($4.7 bn) to Ukraine before the country’s 34th Independence Day, the European Commission announced on 22 August.

The package includes €3.05 billion ($3.6 bn) through the Ukraine Facility mechanism and €1 billion ($1.2 bn) in exceptional macro-financial assistance, according to the Commission’s press service.

“Ahead of Ukraine’s 34th anniversary of independence on 24 August, the EU delivers another strong signal of unwavering support by disbursing €4.05 billion ($4.7 bn) to the country,“ the Commission said.

“As Ukraine celebrates its 34th Independence Day, the EU sends a clear message: our solidarity with Ukraine is unwavering. Today’s disbursement of over €4 billion demonstrates our staunch commitment,” European Commission President Ursula von der Leyen said.

Von der Leyen added that the funding “underlines our commitment not only to Ukraine’s recovery, but to its future as a sovereign and democratic country. Because when Ukraine is strong, Europe is stronger too.”

The €3.05 billion ($3.6 bn) represents the fourth regular payment under the Ukraine Facility program. However, this tranche is more than €1 billion ($1.2 bn) smaller than originally planned because Kyiv has not implemented all reforms promised to the EU.

Despite the reduction, the European Commission noted the payment reflects Ukraine’s progress on EU accession reforms, particularly “restoring the independence” of the National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor’s Office, which the Verkhovna Rada approved on 31 July.

“Safeguarding the autonomy of these two institutions is a cornerstone of Ukraine’s anti-corruption architecture and of its European path,” the Commission emphasized.

The Commission also transferred the seventh installment of its exceptional macro-financial loan (MFA) worth €1 billion ($1.2 bn) to Ukraine.

Since Russia’s full-scale invasion began in February 2022, the EU and its member states have mobilized €168.9 billion ($198 bn) in humanitarian, financial and military aid for Ukraine and its citizens, reports European Pravda.

Ukrainian President Volodymyr Zelenskyy and European leaders will hold an online conversation with US President Donald Trump ahead of his scheduled meeting with Russian leader Vladimir Putin, according to the European Commission.

Deputy Chief Spokesperson of the European Commission Arianna Podesta confirmed the call to Suspilne, saying it will take place on 13 August. German Chancellor Friedrich Merz is organizing the conversation, which will include European Commission President Ursula von der Leyen.

The diplomatic outreach follows Polish Prime Minister Donald Tusk’s disclosure that Washington promised to consult with European partners regarding negotiations with Russia.

Multiple European nations have expressed support for Trump’s efforts to end the Russian-Ukrainian wars. France, Italy, Germany, Poland, Great Britain, Finland and the European Commission backed Trump’s peace initiative but stressed that “the path to peace in Ukraine cannot be determined without it.”

Eight Nordic and Baltic countries issued a separate statement underlining that diplomatic settlement of the Russian-Ukrainian war must defend “vital security interests” of both Ukraine and Europe.

EU High Representative for Foreign Affairs and Security Policy Kaja Kallas has convened a meeting of European foreign ministers to discuss the situation.

This comes as Trump and Putin agreed to meet on 15 August in Alaska. Bloomberg reported that Washington and Moscow seek to reach an agreement to end the war in Ukraine that would secure occupied territories for Russia.

The Wall Street Journal wrote that Putin presented the Trump administration with a ceasefire plan in exchange for territorial concessions from Kyiv.

Trump suggested that a peace agreement between Russia and Ukraine would likely require “a certain exchange of territories for the benefit of both sides.” Specifically, Ukraine should withdraw troops from all of Donetsk Oblast, while Crimea should be recognized as sovereign Russian territory.

Following these reports, Zelenskyy said that “Ukraine will not give away its lands to anyone.”

Ukraine reversed a controversial oversight law on 31 July, a move that promises to restore the independence of key anti-corruption bodies. However, the damage may already be done: the EU has frozen $1.7 billion in aid, which puts more people at risk. Why did Brussels pull the brakes, and what will it take to unfreeze the funds? Here’s what you need to know.

1

What happened?

On 22 July, Ukrainians took to the streets in mass protests after the Verkhovna Rada hastily passed draft law No. 12414. The law aimed to place Ukraine’s premier anti-corruption agencies — the National Anti-Corruption Bureau (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAPO) — under broader prosecutorial oversight.

Protesters saw this as an attempt to weaken the country’s flagship anti-corruption institutions. Days later, the European Union froze $1.7 billion in financial support — the first such move under the $57 billion Ukraine Facility fund. Another $3.8 billion now hangs in the balance.

On 31 July, facing pressure from protesters and foreign partners, the Verkhovna Rada repealed the law. This was a victory for civil society, but Brussels remains cautious.

2

Why did Brussels act now?

Since Russia’s full-scale invasion began, the EU has shown considerable patience with reform timelines. But patience has limits. The European Commission clarified that financial support depends on concrete, verifiable reforms — not just promises.

For years, Ukraine has pledged to protect independent anti-corruption institutions, something most Ukrainians see as a tangible result of the 2013-14 Revolution of Dignity. Brussels now believes those promises are eroding.

The hastily passed law on 22 July was the final trigger. Even though Ukraine repealed it nine days later, credibility was damaged.

3

Was this just about one law?

No. Behind the scenes, European diplomats had been signaling concerns for weeks. According to official commentary cited by Serhiy Sydorenko in European Pravda, the European Commission flagged structural problems during an 11 July subcommittee meeting — weeks before the controversial law was passed.

EU officials warned Kyiv of backsliding in anti-corruption policy, including slow appointments to key posts like the SAPO head and a lack of follow-through on previously promised reforms. While the protest and repeal made headlines, the decision to suspend funds had deeper roots.

The EU’s emphasis isn’t on a single legislative act, but on Ukraine’s broader governance trajectory. The freeze wasn’t a reaction — it was a culmination.

4

What’s the problem with NABU and SAPO?

NABU was created in 2015 to investigate high-level corruption. SAPO, its prosecutorial counterpart, was founded the same year to ensure such cases reach court. Together, they form Ukraine’s flagship anti-corruption structure.

Both agencies have delivered results — investigating former MPs and state-owned company executives, exposing schemes like Ukrzaliznytsia officials purchasing more than 11,000 COVID-19 PCR tests at inflated prices. But they’ve also faced internal pressures and political interference.

The now-repealed law would have effectively removed their operational autonomy by altering oversight mechanisms — precisely what the EU wants Ukraine to safeguard. Repealing the law was necessary, but Brussels is watching what comes next.

5

Is it just about NABU and SAPO?

No. The Asset Recovery and Management Agency (ARMA) presents an even bigger problem. ARMA handles confiscated assets from corruption cases: bank accounts, apartments, luxury cars, and company shares. The concept is straightforward — crime shouldn’t pay.

But ARMA has a serious credibility problem. Assets have vanished, and auctions have been opaque, with luxury items sold at suspiciously low prices. Some of ARMA’s officials are under investigation.

A March 2025 audit by Ukraine’s Accounting Chamber revealed the scope of dysfunction. Of more than 100,000 court rulings instructing ARMA to manage seized assets, only 1% were transferred, leaving over UAH 39 billion unmanaged. Over 61% of disposed assets lacked proper market valuation, resulting in estimated losses of UAH 769 million. Staff shortages and underfunding (just 56% of needed resources) have impeded the agency’s ability to conduct proper oversight.

The EU demands serious structural reform: a public asset registry, transparent auction procedures, and an independent supervisory board. Without these, the additional $3.8 billion will be suspended.

6

How does the EU make these freezing decisions?

The Commission’s actions are tied to the European Reform Agenda (ERA), a jointly agreed-upon roadmap between Ukraine and the EU. The ERA outlines reforms needed to keep financial and political support flowing, covering judicial reform, public administration, democratic standards, and anti-corruption.

The Commission can recommend a funding freeze when Ukraine fails to meet ERA milestones. This decision must be endorsed by a qualified majority of EU member states — not a unilateral move, but a multilayered institutional process. Bodies like the European Court of Auditors and the European Anti-Fraud Office also provide input.

This wasn’t a political knee-jerk reaction. It was a coordinated decision by multiple EU institutions concluding that Ukraine had failed to meet key transparency and institutional independence conditions.

7

Is the EU turning its back on Ukraine?

Far from it. Brussels is doubling down on standards. After missteps with countries like Hungary, where Viktor Orbán took EU money while gradually dismantling democratic institutions, Brussels learned that early neglect leads to long-term democratic backsliding.

With Ukraine, the stakes are higher. Never before has the EU committed so much money, and never to a country at war. The EU is holding Ukraine to higher standards precisely because it wants Ukraine to succeed.

8

What’s at risk for Ukraine financially?

The war has ballooned Ukraine’s budget needs. Western aid helps fund pensions, salaries, schools, and basic services — not just weapons. The frozen $1.7 billion was part of that lifeline. The potential additional $3.8 billion represents almost 10% of the total Ukraine Facility.

Even temporary freezes hurt. Creditors grow nervous. Budget planning becomes chaotic. Most importantly, public trust in government commitments begins to erode. Credibility becomes your most valuable currency when you’re fighting a war while depending on international support.

9

Does war excuse reform fatigue?

Ukrainian officials argue that wartime makes reforms harder to implement. Brussels has responded that being at war makes transparent, accountable institutions more critical, not less. When you’re depending on billions in international aid, donors need absolute confidence that money is being handled properly.

The EU’s position is clear: wartime doesn’t justify rolling back anti-corruption measures — it makes them more urgent.

10

Can Ukraine reverse the freeze by year-end?

Yes, and there are signs of movement. Repealing the oversight law on 31 July was a first step. Ukraine must demonstrate “verifiable corrective steps” — actions, not promises.

This means protecting NABU’s independence, restoring SAPO’s prosecutorial authority, and ensuring both agencies can operate without political interference. Some draft laws are already in the works, and civil society remains vocal.

According to European Pravda, EU officials have reportedly received informal commitments from Ukraine to pass corrective measures in the autumn. These will be scrutinized not only for their content, but also for how transparently and independently they’re implemented. There’s quiet hope that the suspension can be reversed before year-end — but only if progress becomes visible soon.

The $1.7 billion freeze stems from three unmet reform indicators:

• Territorial reorganization of executive power (draft law #4298, registered in 2020, costing $570 million in lost funding);
• Selection of High Anti-Corruption Court judges (legally enabled in June but still not implemented);
• ARMA reforms (already discussed above).

Additionally, Ukraine faces another overdue commitment — vocational education reform legislation due by the end of June — which could trigger further funding penalties in the next reporting period.

The EU’s rules give Ukraine 12 months to complete any reform milestone after the original deadline has passed. This grace period means the funds can still be released in full — but with a delay. However, Kyiv has already lost four of those twelve months. In the case of ARMA, that delay is even more tangible. Due to the agency’s non-compliance with basic criteria, Ukraine has definitively lost out on $85 million in performance-based funding tied to asset recovery benchmarks.

11

Can Ukraine save the $3.8 billion?

Saving the $3.8 billion requires comprehensive ARMA reform. Ukraine needs legislation ensuring transparency, accountability, and protection from political interference. This means proper oversight mechanisms, clear asset management procedures, and eliminating corruption opportunities.

The reforms must address ARMA’s documented failures: the suspicious auctions, unexplained losses, and criminal investigations of top officials. Brussels wants systemic changes, not personnel shuffles. A reliable asset registry, transparent valuation processes, and adequate staffing are non-negotiable.

If Ukraine delivers these reforms, the $3.8 billion will remain available. If not, it will join the frozen $1.7 billion.

12

What happens if Ukraine fails both tests?

Failure to restore NABU and SAPO independence keeps the $1.7 billion frozen. Failure to fix ARMA suspends another $3.8 billion. That’s $5.5 billion at risk — nearly 10% of the entire Ukraine Facility.

Beyond immediate financial impact, failure damages Ukraine’s credibility with other international donors and delays EU accession. The EU has clarified that Ukraine’s membership path depends on building accountable, transparent institutions.

The stakes are particularly high because Ukraine’s citizens have demonstrated a desire for better governance. If the government can’t respond to domestic and international pressure for reform, it raises fundamental questions about its commitment to European integration.

13

Why does this matter beyond Europe?

The United States, World Bank, and other international donors are watching closely. For Ukraine, credibility is currency. Others might follow if the EU — Ukraine’s strongest backer — loses confidence. That could slow financial flows and military and political support.

The outcome will help define the kind of state Ukraine is becoming and whether the West can demand reform while supporting a war partner.

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The European Union is considering establishing a fund for Ukraine worth 100 billion euros ($117 billion) in the next seven-year EU budget, Bloomberg reported on July 8, citing sources familiar with the proposal.

Sources told Bloomberg that the proposed funding, which is set to be presented later in July, would begin to be disbursed in 2028 as a means to provide additional assistance to the war-torn country amid waning U.S. support.

The proposal for an approximately 100 billion euro fund was previously touted by European Union Commissioner for Defense and Space, Andrius Kubilius, who called for the additional funding to be included in the seven-year EU budget in December 2024.

The fund, alongside other options, will be discussed before the Multiannual Financial Framework are released on July 16, according to Bloomberg.

Early in his second term as president, U.S. President Donald Trump repeatedly lambasted the EU for not providing an equal amount of support for Ukraine, urging the bloc to match spending on the war.

Since then, U.S. military and financial support have become unreliable, with contradictory statements coming out of the White House on additional military shipments in recent days.

On July 2 announced a halt in weapons shipments to Kyiv due to dwindling U.S. stockpiles, Trump later claimed he wasn't responsible for the decision and wanted to send more weapons to Ukraine.

Axios reported on July 8 that the White House is pursuing a plan to have Germany sell another Patriot battery to Ukraine, with the U.S. and European allies splitting the cost of the purchase. Sources told the outlet that Trump also pledged to send 10 Patriot interceptor missiles to Kyiv.

As support from the U.S. remains unpredictable, European countries are looking into additional ways to how it can continue to support Ukraine.

The proposed new funding agreement would follow previous support provided through the European Commission through grants and loans.

Since the start of Russia's full-scale invasion in February 2022, the EU has provided 160 billion euros ($187 billion) in aid to Ukraine. Along with Group of Seven (G7) countries, the EU has also provided loans as part of its $50 billion loan back by frozen Russian assets.

As Ukraine's budget deficit continues to grow amid the full-scale war, the European Commission is also discussing with EU member states separate options to help Kyiv sustain its economy, the Financial Times reported on July 8. The deficit could range from $8 billion to $19 billion in 2026.

Ukraine’s 2026 budget could face $19B shortfall as Europe weighs how to fill the gap, FT reports

The financial hole in Ukraine’s budget is linked to reduced U.S. support and the lack of prospects for a swift ceasefire with Russia that Europe had hoped for, the Financial Times reported.

The Kyiv IndependentYana Prots

European Commission President Ursula von der Leyen pledged on July 4 that the European Union will help Moldova defend itself against hybrid threats by "agents of autocracy."

"We are committed to protecting you against the hybrid attacks and the energy shocks that your country has been a victim of," von der Leyen said following the EU-Moldova summit in Chisinau.

"Who is behind those attacks is clear to all of us here. These are the same agents of autocracy trying to undermine our democracies everywhere in Europe."

Von der Leyen praised Moldova's support for Ukraine and the EU, noting its acceptance of hundreds of thousands of Ukrainian refugees and its assistance with European wildfire response efforts.

The visit was made in show of solidarity with Moldova, one of Europe's poorest countries, as it prepares for high-stakes parliamentary elections on Sept. 28.

The pro-European government of President Maia Sandu faces a challenge from the pro-Russian Socialist Party, amid growing fears of destabilization ahead of the vote.

Sandu has accused Russia of using its military presence in Moldova's Russian-occupied Transnistria region to stir unrest and derail the country's EU aspirations. On June 12, she warned that Moscow could provoke a crisis in Transnistria to influence the election outcome.

Transnistria has been under Russian-backed separatist control since the early 1990s, with approximately 1,000 to 1,500 Russian troops still stationed in the region.

On June 11, Transnistrian authorities declared a 30-day state of emergency after a sharp drop in natural gas supplies. The unrecognized region has faced mounting energy shortages since January, when Russian energy giant Gazprom halted deliveries in what many see as an attempt to destabilize the situation in Moldova.

Moldova was granted EU candidate status in 2022. Sandu's ruling Party of Action and Solidarity aims to maintain its parliamentary majority and move the country closer to full membership by 2030.

Moldovan Prime Minister Dorin Recean earlier told the Financial Times that Russia plans to send 10,000 troops to Transnistria and establish a pro-Kremlin government in Moldova.

Death of top Russian oil executive fuels fresh scrutiny of elite’s ‘window falls’

The unexplained death of a top Russian oil executive on July 4 is fueling renewed scrutiny over the rising number of high-profile Russian officials and businessmen who have died under mysterious circumstances, specifically, have fallen out of windows. Andrei Badalov, vice president of Transneft, Russia’s largest state-controlled pipeline transport company,

The Kyiv IndependentTim Zadorozhnyy

The European Commission has proposed that Ukraine join the European Union's mobile roaming area starting January 1, 2026, providing Ukrainian users the ability to make phone calls, texts, and use mobile data in the bloc's 27 countries at no extra charge.

"We want Ukrainian citizens to stay connected to their loved ones across the EU, as well as in their home country. That's why we propose that Ukraine join our roaming family," European Commission President Ursula von der Leyen said in a statement.

The proposal, first announced on June 16, will serve as a means of integration into the European Union's "Roam like at Home" provision in affect between all EU nations. The proposed change will impact the over four million Ukrainian refugees living in the EU.

Ukraine's full integration in the roaming provisions will replace voluntary measures that "allowed for roaming without surcharges and affordable international calls for EU and Ukrainian citizens abroad," according to the European Commission. The current measure will extend to December 31, 2025, ahead of the planned integration.

If approved, Ukraine will become the only country outside of the EU to join the bloc's "Roam like at Home" policy.

The move, which awaits European Council approval, comes as Ukraine continues to implement reforms in pursuing membership in the European Union.

Ukraine applied for EU membership at the onset of Russia's full-scale invasion in 2022. The country has made quick progress, achieving candidate status within months, with the initial negotiations formally launching in June 2024.

Since the start of 2025, Ukraine has opened three negotiation clusters under Poland's rotating presidency.

Poland lead the EU Council's presidency until June, and Denmark will take over the role in July. Ukraine aims to open the remaining three negotiation clusters in the second half of 2025 under the Danish chairmanship, the President Volodymyr Zelensky said.

There are six accession negotiation clusters, consisting of several individual chapters. Negotiations prepare a candidate country to become an EU member.

The EU’s Commissioner for Enlargement, Oliver Varhelyi, said that Ukraine could potentially join the bloc by 2029 if it successfully implements necessary reforms.

‘I am against Ukraine’s entry into the European Union,’ Polish president-elect Nawrocki says

“Ukraine must understand that other countries, including Poland, Hungary, and other European countries, also have their own interests,” Polish President-elect Karol Nawrocki said.

The Kyiv IndependentVolodymyr Ivanyshyn

The Group of Seven (G7) nations need to impose harsher sanctions on Moscow in order to secure a ceasefire in the war against Ukraine, European Commission President Ursula von der Leyen and European Council President Antonio Costa said at the start of the G7 summit in Canada.

The G7 Leaders Summit kicked off on June 15 in Kananaskis, Canada, with official talks held June 16-17. While Ukraine hopes to win economic support and unified pressure against Russia, the rapidly escalating conflict between Israel and Iran may dominate this year's conference.

"To achieve peaceful strength we must put more pressure on Russia to secure a real ceasefire, to bring Russia to the negotiating table, and to end this war. Sanctions are critical to that end," von der Leyen said at a press briefing on June 15 attended by a Kyiv Independent journalist.  

Economic sanctions have been an effective intervention since the start of Russia's full-scale invasion, von der Leyen said. She noted that combined G7 and European Union sanctions have decreased Russian oil and gas revenues by nearly 80% since February 2022.

"(T)he sanctions are working, and we will do more," she said.

Von der Leyen urged the G7 to adapt the economic restrictions proposed in the EU's 18th sanctions package, announced on June 10. The new measures target Russia's energy and banking sectors and propose a further reduction in the oil price cap, bringing the cap down from $60 to $45 per barrel.

"I will invite all G7 partners to join us in this endeavor," she said.

With no new US aid packages on the horizon, can Ukraine continue to fight Russia?

The U.S. has not announced any military aid packages for Ukraine in almost five months, pushing Kyiv to seek new alternatives. But time is running out quickly as Russian troops slowly advance on the eastern front line and gear up for a new summer offensive. “While Ukraine’s dependence on

The Kyiv IndependentKateryna Hodunova

Costa echoed the call for sanctions and the necessity of economic pressure in order to achieve a ceasefire. Europe is committed to "increasing additional sanctions to cripple (Russia's) ability to wage war and pressing for an unconditional ceasefire," he said.

Europe's call for unity may meet with resistance from the United States, which has assumed a dramatically different posture towards Ukraine and Russia since President Donald Trump took office in January. Trump has not imposed any new sanctions against Russia, even Moscow blatantly obstructs peace efforts and escalates mass strikes against Ukrainian cities.

The U.S. also reportedly opposes lowering the G7 oil price cap — a measure first introduced in December 2022 that prohibits Western companies from shipping, insuring, or otherwise servicing Russian oil sold above $60 per barrel.

The price cap debate has become more urgent as oil prices, which had fallen below the $60 cap in recent months, surged following Israel's recent strikes against Iran.

Despite U.S. resistance, the EU and the United Kingdom — backed by other European G7 countries and Canada — have said they are prepared to move forward with the proposal, even without Washington's endorsement.

President Volodymyr Zelensky, on the other hand, has said the EU sanctions and proposed price cap drop don't go far enough. Zelensky on June 11 said the EU's 18th round of sanctions "could be stronger" and proposed further slashing the oil price cap to $30 per barrel.

"A ceiling of $45 per barrel of oil is better than $60, that's clear, that's true. But real peace will come with a ceiling of $30," he said. "That's the level that will really change the mindset in Moscow."

Zelensky and Trump are expected to meet on the sidelines of the G7 summit on June 17. The meeting will mark their third in-person encounter since Trump took office.

High stakes, low resolve: What Ukraine can expect from the upcoming G7 summit

As world leaders prepare to gather in the remote community of Kananaskis in Alberta, Canada for the Group of Seven (G7) Leaders’ Summit on June 15-17, Russia’s war in Ukraine once again holds center stage — but views on how to address the three-year conflict diverge sharply. In the five months

The Kyiv IndependentDmytro Basmat

Ylva Johansson, former European Commissioner for Home Affairs, will serve as the European Union's new special envoy for Ukrainians in the bloc, POLITICO reported on June 12.

According to anonymous officials that spoke to POLITICO, Johansson will fill the newly created post, overseeing the Commission's long-term strategy for Ukrainian refugees currently residing in the European Union.

Johansson, a former Swedish minister and European Commission official, previously visited Ukraine on several occasions, including a refugee camp on the border with Romania. She received the Ukrainian order of merit in September 2024.

As special envoy, Johansson will be responsible for EU initiatives focused on helping Ukrainian refugees transition into permanent legal statuses or return home.

As part of these initiatives, the EU will launch "unity hubs" – information centers jointly managed with the Ukrainian government. The hubs will support Ukrainian refugees to integrate with EU host countries or repatriate to Ukraine.

Germany, which has has taken in more than 1 million Ukrainian refugees since the start of the full-scale invasion, recently committed to establishing unity hubs in Berlin. The unity hubs in Berlin will provide Ukrainians with access to educational and career opportunities both in Ukraine and Germany.

The European Commission also recently extended temporary protection Ukrainian refugees who fled to the EU following Russia's invasion of Ukraine.

According to Eurostat, 4.26 million Ukrainians currently hold temporary protection status in the EU as of April 2025.

Germany to supply new Iris-T air defense systems to Ukraine, rules out Taurus missiles

Germany will deliver new IRIS-T air defense systems to Ukraine under a three-year supply plan, President Volodymyr Zelensky said during a joint press conference with German Defense Minister Boris Pistorius, who said Berlin has no plans to provide Taurus long-range missiles.

The Kyiv IndependentTim Zadorozhnyy