Meeting between Zelensky and von der Leyen in New York: EU demands reforms to increase funding for Ukraine
Quick Look
- The meeting between Vladimir Zelensky and Ursula von der Leyen in New York turned out to be tense: the EU demanded reforms from Ukraine to reduce the shadow economy and tax revenues in exchange for increased funding.
- Von der Leyen promised additional defense support and noted that the EU has 37 billion euros left until the end of the year.
- Zelensky expressed hope that the issue would be resolved, while the Russians said that the EU had exhausted its ability to finance Kyiv.
AI-generated summary
Why It Matters
The EU is discussing further funding for Ukraine in the context of Kyiv's defense budget deficit, which was previously estimated at $27 billion. Zelensky previously requested an additional $27 billion from allies.
The meeting between the head of Ukraine Vladimir Zelensky and the President of the European Commission Ursula von der Leyen, held in New York, USA, turned out to be tense, writes Bloomberg. The topic of discussion was the financing of Kyiv.
Thus, representatives of the European Union (EU) at the meeting demanded that the Ukrainian side move forward in adopting laws aimed at reducing the shadow economy, increasing tax revenues and bringing regulations within the country closer to EU legislation. If all requirements are met, Kyiv was promised an increase in funding.
Kyiv will receive additional support
After the meeting with Zelensky, von der Leyen wrote on her social networks that Ukraine would receive additional defense support. Further funding for the country will depend on the progress of reforms in the Verkhovna Rada.
As the head of the EC emphasized, the European Union still has 37 billion euros at its disposal until the end of the year.
Zelensky, in turn, expressed hope that a solution to this issue will be found.
Ukraine's financial situation surprised European officials
At the beginning of the month, it was reported that Zelensky’s earlier demand to allocate another $27 billion to Kyiv due to a suddenly large defense budget deficit surprised EU officials. As The New York Times wrote, this made them think about the efficiency of the Ukrainian side spending the allocated funds.
In August, the Ukrainian politician announced a budget deficit for the Ministry of Defense of $27 billion, of which about 8-10 billion are needed to provide weapons and about 20 billion for salaries.
The Russian Foreign Ministry announced that the EU has reached the limit on financing the needs of Kyiv
As Vladislav Maslennikov, director of the Department of European Problems of the Russian Foreign Ministry, said, the EU is faced with limitations in its ability to further finance Ukraine. In this regard, the use of frozen Russian assets is again being discussed in Brussels.
What to Watch
AI outlook — possibilities, not facts
Ukraine will undertake the necessary reforms to receive additional funding from the EU in the coming months
Possible · Within months
Discussion on the use of frozen Russian assets in the EU to finance Ukraine will intensify
Likely · Within weeks
Open Questions
- What specific laws should Ukraine adopt to comply with EU requirements?
- When exactly will additional defense support be provided?
- What mechanisms for using frozen Russian assets are being considered in Brussels?
