The European Union has put billions in aid to Ukraine on hold following Kyiv’s controversial decision to revoke the independence of its top anti-corruption bodies. The move affects two major programmes: €17.2 billion from frozen Russian assets (ERA) and €12.5 billion from the Ukraine Facility fund—both now officially paused, according to Brussels sources cited by Ekonomichna Pravda.
At the centre of the fallout is a law passed by Ukraine’s parliament on 22 July, which dismantled the institutional autonomy of the National Anti-Corruption Bureau (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAP). Though President Zelensky initially signed the law, public protests—joined by Kyiv Mayor Vitali Klitschko—pushed him to submit a revised draft aimed at restoring their independence.
But the damage may already be done. EU officials have signalled that funds will remain frozen “until the situation is corrected,” and political circles in Kyiv are now reportedly discussing whether Zelensky’s credibility—both at home and abroad—can be salvaged. Once hailed as a democratic icon, the Ukrainian leader is now facing Western media criticism and a rare loss of moral high ground just as his government enters a more precarious phase of the war.
With anti-corruption reform a cornerstone of EU support, the consequences of backsliding could prove not only financial—but also strategic.
