Ukraine to receive record-breaking financial aid package from EU and partners for recovery, energy, air defense, and agriculture. Prime Minister Denys Shmyhal has announced multi-billion euro agreements reached during the Ukrine Recovery Conference in Rome.

Among them is the creation of a new European Flagship Fund worth €500 million, set to launch in 2026 with a focus on energy and infrastructure investment.

In addition, under the Ukraine Facility, agreements have been signed for:

• €1.8 billion in loan guarantees,
• €580 million in grants,
• and blended financing mechanisms.

Meanwhile, European Commission President Ursula von der Leyen, commenting on the deal, stated that the EU aims to unlock up to €10 billion in investments to “rebuild destroyed homes, reopen hospitals, support businesses, and ensure energy security.”

Switzerland has committed €5 billion for economic recovery efforts.

The European Investment Bank is providing Ukraine with:

• €134 million for transport infrastructure,
• and a €200 million loan to Ukrhydroenergo (with the first €120 million tranche) to help restore hydropower plants.

Separately, the UK is offering a $2.3 billion loan for Ukraine’s air defense needs. The funds will be used to procure weapons and defense materials from the UK. The loan has a 19-year term with a 6-year grace period.

Ukrainian farmers will also receive €50 million in grant aid.

Shmyhal added, “We’ve reached an agreement with the Council of Europe Development Bank to fund €100 million in housing certificates under the eRecovery program, and an additional €200 million loan to support internally displaced persons.”

President Volodymyr Zelensky and U.S. President Donald Trump discussed a potential change in Ukraine's ambassador in Washington during a recent phone call, a source familiar with the conversation told the Kyiv Independent.

Oksana Markarova has held the post since April 2021, and played a central role in coordinating U.S. military and financial support during the early phases of Russia's full-scale invasion.

According to the source, the topic of replacing her was raised by Kyiv, suggesting the move could be "useful for both sides." The source added that there are multiple "strong candidates" in the running.

Prime Minister Denys Shmyhal, Deputy Prime Minister Olha Stefanishyna, Defense Minister Rustem Umerov, and Energy Minister Herman Halushchenko are among the candidates, Bloomberg reported.

When contacted by the Kyiv Independent, a spokesperson for Stefanishyna said they "do not comment on rumors."

The possible reshuffle comes at a moment of renewed tension between Kyiv and Washington. The U.S. Defense Department recently paused shipments of critical weapons systems, including Patriot missiles and precision-guided munitions, sparking concern in Kyiv.

The discussion about Ukraine's representation in Washington also coincides with longstanding speculation about a broader government reshuffle.

Rumors about replacing Shmyhal as prime minister have circulated since last summer. Although Zelensky replaced several officials in September 2024, Shmyhal remained in office.

Halushchenko, one of the potential ambassadorial candidates, has faced criticism in parliament. Lawmakers from the Energy Committee, led by lawmaker Inna Sovsun, introduced a motion to dismiss him in January, citing alleged corruption.

Shmyhal has served as Ukraine's Prime Minister since March 2020, overseeing national governance during a period marked by reforms and wartime crises. Before his premiership, he held key roles as Ivano-Frankivsk Oblast Governor and Vice Prime Minister.

Stefanishyna is a seasoned Ukrainian diplomat and expert in European integration who has held high-level government roles since 2020. In September 2024, she was appointed Deputy Prime Minister for European and Euro-Atlantic Integration, and Justice Minister.

Umerov is Ukraine's current Defence Minister, appointed in September 2023. He started his political career as a member of the Parliament for the opposition party Voice (Holos). Umerov played a major role in peace talks with Russia in the early phase of the full-scale war.

The ambassadorial review comes as Kyiv seeks to strengthen its diplomatic ties with Washington.

Zelensky described his July 5 phone call with Trump as "the best conversation in all this time." The U.S. president echoed the sentiment, calling the exchange "very strategic."

As Ukraine awaits stalled US weapons, Trump says he’s ‘helping a lot’ in war with Russia

“I am helping Ukraine. I’m helping it a lot,” U.S. President Donald Trump said when asked in Washington why the U.S. does not support Ukraine as strongly as it supports Israel.

The Kyiv IndependentTim Zadorozhnyy

Andriy Yermak, head of Ukraine's Presidential Office, has been leading campaigns to supplant three top officials in the Ukrainian government, the Economist reported on July 6, citing multiple anonymous officials.

The story follows a corruption probe into Deputy Prime Minister Oleksii Chernyshov, the highest-ranking official in Ukrainian history to face such charges while still in office. According to the Economist's sources, Yermak was a driving force behind the investigation.

Yermak, President Volodymyr Zelensky's close friend and chief adviser, spurred on the Chernyshov probe while also renewing attempts to replace Kyrylo Budanov, head of Ukraine's military intelligence agency (HUR) , and Prime Ministery Denys Shmyhal, three unnamed officials told the Economist.

There is no evidence that Yermak ordered an investigation into Chernyshov, the Economist reports, but officials told the outlet that he influenced the case by allowing it to progress while freezing other investigations.

Chernyshov ran afoul of Yermak by offering himself as an alternative liaison to Washington, the officials claimed. His removal would also reportedly clear the way for Deputy Prime Minister Yuliia Svyrydenko, a Yermak protege, to assume the role of Prime Minister in the event of Shmyhal's dismissal.

Rumors of a government reshuffle unseating Shmyhal have circulated for months. Ukrainian media reported last summer that Zelensky was considering replacing the prime minister with Svyrydenko. While several key officials were replaced in a reshuffle in September 2024, Shmyhal kept his post.

Chernyshov, too, has said he will not step down from his role as deputy prime minister despite the ongoing corruption probe.  

Reports of imminent dismissal have also periodically surrounded Budanov, Ukraine's spy chief. Budanov has rejected such rumors as "Russian propaganda" in the past.

Sources told the Economist that Yermak was leading another effort to oust Budanov in June 2025. According to the outlet, warnings from the White House not to fire Budanov may have helped secure his position.

Politico reported in June that U.S. officials, particularly those working in the Trump administration, found Yermak's diplomatic style abrasive and off-putting, potentially risking U.S.-Ukrainian relations at a critical time.

Ukraine imposes sanctions on Russian financial, cryptocurrency schemes

Restrictions were imposed on 60 legal entities and 73 Russian citizens.

The Kyiv IndependentKateryna Hodunova

Ukraine has received another 1 billion euros ($1.1 billion) in macro-financial assistance from the European Union as part of a G7 loan, Prime Minister Denys Shmyhal announced on June 13.

"This is the fifth tranche of macro-financial assistance from the EU under the ERA Extraordinary Revenue Acceleration) initiative," Shmyhal wrote on social media. "The funds will be directed toward key expenditures of the state budget."

Shmyhal thanked Ukraine's partners for their "consistent and reliable support," adding, "Together, we will make (Russia) pay for all the damage caused to Ukraine."

According to Shmyhal, Ukraine has received a total of 7 billion euros ($8 billion) from the European Union under the ERA initiative, which is funded by the windfall profits generated from immobilized Russian sovereign assets.

The ERA mechanism, launched by the G7 and backed by the EU and the United States, is a $50 billion program designed to support Ukraine through loans repaid using future income from frozen Russian assets. Since Russia's full-scale invasion in 2022, G7 countries have frozen around $300 billion in Russian sovereign assets.

Ukraine received the previous 1-billion-euro tranche on May 8 as part of the fourth installment of EU aid under ERA.

EU provides Ukraine with $1 billion tranche under G7 loan covered by Russian assets

This is the fourth such tranche from the bloc, which is secured by proceeds from frozen Russian assets.

The Kyiv IndependentKateryna Hodunova