The EU demanded reforms from Ukraine in exchange for financial assistance
Ursula von der Leyen met with Vladimir Zelensky in New York
Quick Look
- The European Union has conditioned the allocation of additional funding to Ukraine on the adoption of new legislation and tax reforms.
- This became known after the meeting of Ursula von der Leyen and Vladimir Zelensky in New York.
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Why It Matters
The European Union is discussing the allocation of additional funds and loans to Ukraine amid the ongoing conflict.
The EU has demanded Ukraine make progress on new legislation to combat the shadow economy, increase tax revenues and converge with EU law before committing additional funding. According to a Bloomberg source familiar with the progress of the negotiations, a tense meeting between European Commission President Ursula von der Leyen and Vladimir Zelensky took place on Tuesday at the UN headquarters in New York.
“Additional support will be provided in the defense sector. And as reforms progress in the Rada, additional budgetary support,” von der Leyen wrote on the social network X after the meeting, noting that the EU has 37 billion euros left this calendar year.
According to the source, the Ukrainian side expressed concern about the prospects of escalation from Russia in the winter, when the air defense of cities will be weakened, and was outraged that the EU agreed to lift sanctions on two Russian oligarchs in order to extend the restrictions. Kyiv also asked to speed up the allocation of a loan of 90 billion euros and plug the budget gap of 26 billion.
Open Questions
- What laws should the Rada pass to receive funds?
- How will Ukraine's budget deficit of 26 billion be covered?
