E.U. Cuts Aid to Ukraine Over Corruption Concerns

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The $1.7 billion reduction capped a tough week for President Volodymyr Zelensky as he deals with Ukraine’s governance issues.

Protesters in Kyiv wave signs and hold up a Ukrainian flag.
Protests erupted Wednesday in Kyiv after the Ukrainian Parliament stripped the independence of two agencies at the center of the government’s anticorruption efforts.Credit...Brendan Hoffman for The New York Times

Andrew E. Kramer

July 26, 2025Updated 4:10 p.m. ET

President Volodymyr Zelensky’s anticorruption policies have already provoked Ukraine’s first antigovernment protests since the Russian invasion in 2022. Now, it seems, they may cost the country a portion of its foreign aid from the European Union, in a clear rebuke from the bloc, once a staunch ally.

The European Union said on Friday that it would withhold 1.5 billion euros, or $1.7 billion, from an overall fund of 4.5 billion euros whose disbursement is dependent on achieving good governance standards and that can’t be used for military purchases. The decision is not final, however, and the funding can be restored if Ukraine meets certain benchmarks.

Mr. Zelensky had no public comment on the aid cut, which nevertheless was a setback for Ukraine’s leader, who is depending on European financial support to fill gaps left by the Trump administration’s refusal to underwrite Ukraine’s war effort.

While holding back Western aid to spur reform was common before Russia’s invasion, Friday’s decision seemed to signal a new willingness by the bloc to admonish Mr. Zelensky’s government on domestic policy during the war. It also raised questions about whether the glow around Mr. Zelensky might be beginning to dim among Ukraine’s Western allies.

James Wasserstrom, an American anticorruption expert, said in an interview that “the luster is definitely coming off” Mr. Zelensky’s wartime leadership among governments providing financial assistance. He added, “There is exasperation at Zelensky in the donor community.”

The E.U.’s decision capped a tumultuous week for Mr. Zelensky, who first pushed a measure through Parliament that stripped the independence of two anticorruption agencies, raising protests from foreign leaders as well as the Ukrainian people.


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