The EU canceled a massive disbursement of money to Ukraine due to suspicions of corruption.

The European Union (EU) has decided to suspend the disbursement of $1.7 billion (€1.5 billion) in aid to Ukraine due to persistent concerns about corruption and the slow implementation of key reforms in the country.

This amount is part of a broader fund of €4.5 billion included within the macro-financial support package totaling €50 billion previously approved by the EU to support economic stability, recovery, and institutional reform efforts in Ukraine.

According to the agreed terms, the release of the funds is conditional on meeting a series of objectives known as "progress criteria" or "reform milestones."

However, European authorities have determined that Ukraine hasn't met several of those requirements. One of the main failures is the lack of appointments of judges to the High Anti-Corruption Court, an institution essential in the fight against high-level corruption.

Additionally, the EU has expressed concern about the transparency of the selection process and about the overall pace of reforms in the judicial sector.

This suspension represents a major blow for Ukrainian President Volodymyr Zelensky, whose administration has relied heavily on European financial assistance, especially at a time when military and financial support from the United States has decreased under President Donald Trump.

European aid is crucial to maintaining the country's economic stability while the armed conflict with Russia continues.

One of Zelensky's most controversial actions that contributed to the EU's decision was his push for a legislative measure in the Ukrainian Parliament (the Verkhovna Rada) that reduced the independence of two important anti-corruption agencies: the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO).

This action provoked a strong reaction from both European leaders and Ukrainian citizens, generating public protests and harsh international criticism. In response, Zelensky was forced to submit a new bill to restore the independence of both institutions, seeking to calm both internal and external tensions.

Nevertheless, this attempt at rectification didn't succeed in reversing the EU's decision, since the European body had already made a determination based on previous and broader concerns about the levels of corruption within the Ukrainian government.

This is compounded by recurring criticism regarding the use of the state of emergency during the war, which has allowed Zelensky's executive branch to concentrate power and make controversial decisions, such as the suppression of journalists, activists, and opposition political figures, which has raised suspicions about democratic backsliding in the country.