The European Council will reportedly approve on Tuesday both its €1.35 billion ($1.56 billion) fifth tranche of funding for Ukraine and the release of €600 million ($692 million) of funding previously held back due to Ukraine’s failure to meet EU conditions.
Ukrainska Pravda cited a draft decision obtained by its sister publication European Pravda as its source.
“Ukraine continues to uphold and respect effective democratic mechanisms, including a multi-party parliamentary system and the rule of law, and to guarantee the observance of human rights, including the rights of persons belonging to minorities,” the draft decision reads, Ukrainska Pravda reports.
Ukraine Facility – the EU’s €50 billion ($58.3 billion) financial assistance program – is based on the principle of “money for reforms,” meaning that the funding is released in installments based on Ukraine’s compliance with EU values and policy.
The €600 million of funding was held back by the EU when Ukraine received its fourth tranche of Ukraine Facility funding earlier this year. This was based on President Volodymyr Zelensky’s government failing to reform the anti-corruption Asset Recovery and Management Agency (ARMA) within the first quarter of 2025.
However, the withheld funds will now reportedly be released – as permitted under EU rules if the delayed reforms are implemented within one year.
The government still has work to do if it plans to claim all the funding it is entitled to. The proposed fifth tranche of funding was worth €2 billion to Ukraine, but only €1.35 billion has been released.
In September, Reconstruction and Relief for Ukraine (RR4U) found that Ukraine had failed to meet eight indicators for funding under the Ukraine Facility program.
Unless Ukraine is able to implement amendments concerning the review and verification of judicial integrity declarations and the digitalization of enforcement proceedings before the second quarter of 2026, this latest round of withheld funds will reportedly be forfeited.