Ukraine’s parliament failed to pass a critical local government oversight law required for EU funding yesterday, potentially jeopardizing access to billions in European financial support as a key reform deadline expired in March.

The Verkhovna Rada rejected draft law №13150 with only 206 votes in favor of the required 226.

The legislation would have established oversight mechanisms for local government decisions and created a registry of municipal acts—requirements embedded in Ukraine’s €50 billion Ukraine Facility agreement with the European Union.

Another missed EU reform target

Ukraine has already missed its 31 March 2025 deadline for implementing this reform. This is part of a broader pattern of legislative delays that risk the country’s access to Europe’s largest financial support package during wartime.

The Ukraine Facility provides quarterly payments based on Ukraine meeting specific milestones, including democratic governance and rule of law requirements.

These bodies would have the authority to demand corrections to illegal decisions and take violators to court when necessary.

Why local oversight matters during war

The European Union structured the Ukraine Facility around strengthening democratic institutions even as Ukraine fights Russia’s invasion. At least 20% of the program’s €5.27 billion in grants must support sub-national authorities, making local government accountability essential for unlocking EU funds.

The Ukraine Facility regulation specifically mandates “effective democratic mechanisms and institutions, including a multi-party parliamentary system and the rule of law,” as well as systems “to effectively prevent, detect and correct irregularities, corruption and in particular fraud, all forms of corruption, including high-level corruption, or any other illegal activity ”

Stakes beyond one law

Since March 2024, the EU has expended over €12 billion to Ukraine under the facility, funding teacher salaries, healthcare workers, and essential government operations while the country allocates domestic resources to defense.

The failure comes as Ukraine depends on international financing to cover roughly half its $37.5 billion external funding needs for 2024.

Beyond the Ukraine Facility, the country relies on additional EU support through the European Peace Facility and bilateral aid from member states.

Parliament had initially approved the bill for further development in May, but the final version failed to gain sufficient support nearly four months after the EU’s implementation deadline.

The Trump administration has approved an $825 million sale of 3,350 Extended Range Attack Munition (ERAM) missiles to Ukraine, marking the first major new weapons sale to Kyiv under the current administration, CNN reported on 28 August.

ERAM may provide Ukraine a new, affordable, and precise standoff strike capability with a range up to around 400 km, helping Ukraine engage targets deeper behind the front lines while reducing the risk to its aircraft. Details regarding potential restrictions on the missiles’ use remain unclear.

According to the report, the missiles could be delivered later this year if the sale proceeds as expected. The ERAM missiles have a range of 150-280 miles and will be accompanied by 3,350 GPS/INS navigation systems.

The State Department announced the proposed sale on 28 August, following meetings between President Donald Trump and both Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy earlier this month. The announcement came after a night of deadly Russian strikes on the Ukrainian capital.

“Ukraine will use funding from Denmark, the Netherlands, and Norway and Foreign Military Financing from the United States for this purchase,” the State Department notice reported. The department emphasized that “the ERAM is an example of working together with our NATO allies to develop a capable and scalable system capable of being delivered on a fast timeline.”

While the Trump administration has previously approved sales of equipment to maintain existing weapons systems, this represents the first major arms sale of new weapons to Ukraine announced by the administration, according to CNN.

The State Department justified the sale by noting it “will support the foreign policy and national security objectives of the United States by improving the security of a partner country that is a force for political stability and economic progress in Europe.”

The timing of the announcement coincides with ongoing diplomatic efforts to end the conflict that have yet to produce results.

According to European media reports cited by CNN, the missiles could arrive in Ukraine within six weeks of the sale’s completion.