Interfax-Ukraine
19:02 25.07.2025

Ukraine Facility tranche will be cut as Kyiv implements 13 reforms out of 16 – EC spokesperson

3 min read
Ukraine Facility tranche will be cut as Kyiv implements 13 reforms out of 16 – EC spokesperson

The next, fourth in 2025 tranche of financial assistance to Ukraine under the Ukraine Facility mechanism, which the Ukrainian authorities requested back in June, will be provided in a smaller amount - EUR3.05 billion instead of EUR4.5 billion, since Ukraine has not implemented 3 out of 16 reforms promised to the European Union, said European Commission spokesperson Guillaume Mercier.

Ukraine submitted the fourth payment request on June 6 for a partial payment (EUR 3 billion instead of EUR 4.5 billion), while the Commission assessed the request and on June 30 submitted a proposal to the EU Council, Mercier told reporters.

According to him, the fourth tranche is the largest in terms of the amount and scope of reforms to be implemented. If all indicators are met, Ukraine will receive EUR4.5 billion, while 16 reforms need to be implemented, the EU spokesman explained.

However, he noted, in its request, Ukraine declared the implementation of 13 out of 16 necessary reforms, since the implementation of 3 others is still ongoing. The Commission assessed 13 reforms as completed and proposes that the EU Council allocate EUR3.05 billion as the fourth payment under the Ukraine Facility.

According to Mercier, of the three unfinished reforms, one is the law on the territorial organization of the executive branch (the so-called decentralization reform), and the other is the law on the reform of the ARMA. The third unimplemented reform concerns the selection of judges for the High Anti-Corruption Court.

According to the methodology for partial payments approved earlier this year, if the reform is not completed on time, the corresponding amount is suspended for a period of up to 12 months, during which the reforms can be implemented and the corresponding payments made.

Two weeks ago, the European Commission announced that it had determined the size of the fourth regular tranche under the first basic component of the European Union program Ukraine Facility - it will amount to EUR3.05 billion, which means another decrease compared to previous tranches.

The payment of the fourth tranche is expected in August.

The first regular tranche of the Ukraine Facility, which Ukraine received in August last year, amounted to EUR4.2 billion, including a grant of EUR1.5 billion, the second in December last year - EUR4.1 billion, of which a grant of EUR1.5 billion, and the third in early April this year - EUR3.5 billion, including a grant of EUR400 million.

Earlier, the Ministry of Finance of Ukraine reported that in 2025, the Ukraine Facility planned to provide about EUR12.5 billion in financial support for Ukraine, of which EUR1.5 billion in the form of grant support. In the updated program with the IMF at the end of June, the forecast for financing under this program this year is $12.9 billion.

At the same time, according to the terms of the Ukraine Facility program, the volume of tranches is tied to Ukraine's fulfillment of key indicators.

In early June of this year, Finance Minister Serhiy Marchenko appealed to the people's deputies with a request to timely adopt laws within the framework of Ukraine's obligations to international partners.

"We have already lost EUR1.2 billion in the first quarter. Of these, EUR500 million are grant funds, lost due to unvoted laws and obligations under the Ukraine Facility," Marchenko stated at the time.

The updated program with the IMF predicts that under the baseline scenario, in which the war ends at the end of this year, Ukraine will need $42.8 billion in external financing to cover the deficit this year.

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