Ukraine could forfeit $4.2B in EU funds after missing reform conditions
Ukraine could forfeit 3.6 billion euros ($4.2 billion) in EU funds after failing to fulfill conditions required for the money to be disbursed, according to a new report.
Kyiv failed to implement nine indicators in the last three months of 2025, the highest number missed in any quarter since the Ukraine Facility began in 2024, according to a Dec. 29 assessment by RRR4U (Resilience, Reconstruction and Relief for Ukraine), a consortium of leading Ukrainian think tanks.
The missed indicators are necessary for the release of 2.3 billion euros ($2.7 billion) from the Ukraine Facility, an EU financial assistance program launched in 2024, the report said.
That would add to 1.3 billion euros ($1.5 billion) already jeopardized after Kyiv failed to meet four other conditions earlier in the year, the report said.
The setback would be a blow to Kyiv's fragile finances, as the nation seeks additional funds to sustain its military and keep the state afloat over the next two years. While European leaders agreed to provide Kyiv with a crucial $105 billion loan at a Brussels summit on Dec. 19, that sum will cover two-thirds of the country's needs in 2026-2027.
Ukraine could earn back the money in the future if it succeeds in implementing the 13 indicators, which include changes to the country's court system and reforms in the energy sector.
Later on Dec. 29, the Ministry of Economy said in a press release that it was updating "the mechanisms for managing, monitoring and controlling the implementation" of the reforms necessary for securing future tranches of the Ukraine Facility.
It was not immediately clear whether these changes would atone for the shortfalls in reform implementation highlighted by the report.
Ukraine received 10.7 billion euros ($12.6 billion) in 2025 from the Ukraine Facility, according to the Ministry of Economy.
Kyiv relies on foreign aid to keep the state afloat and sustain its military. The EU is Kyiv's largest funder and often links funding to conditions aimed at aligning Ukraine's policies and regulations with European norms
After the approval of the European loan on Dec. 19, Japan and Canada pledged new financial support worth $6 billion and $1.8 billion, respectively.
