Ukraine's parliament passes state asset agency reform crucial for EU funding

Ukraine's parliament passed a reform of the Asset Recovery and Management Agency (ARMA) on June 18, a key step toward European integration and a condition listed in the EU's Ukraine Facility plan.

The legislation passed with the support of 253 lawmakers "after months of obstructions... unblocking 600 million euros ($690 million) in EU funds," lawmaker Yaroslav Zhelezniak said.

The ARMA is Ukraine's national agency tasked with locating, recovering, and managing assets seized in criminal proceedings, namely during corruption cases.

Proposed reforms include stricter integrity and qualification standards for leadership candidates and merit-based hiring through open competitions involving civil society. They also call for independent external audits, clear deadlines for appointing asset managers, and the use of certified professionals held legally accountable for mismanagement.

The Ukraine Facility, an EU program providing Ukraine with 50 billion euros ($58 billion) in multi-year financial support contingent on reforms, set the end of March as the deadline for the ARMA's reform.

Anti-corruption experts, lawmakers, and Transparency International in Ukraine have backed the reforms, but discussions have dragged on for months since several versions of the bill were introduced in December 2024 and January.

The ARMA has long criticized the proposed legislation, arguing it had already carried out substantial and "transformative" reforms since 2023.

Transparency International reacted by saying that the ARMA's "public communication suggests that the agency’s primary concern is not the introduction of meaningful reforms, but ensuring that its current leadership can continue operating as it has."

Ukraine has embarked on extensive reforms as part of its efforts to join the EU and other Western structures, though Russia's full-scale invasion has presented fresh challenges to this effort.