The European Union has rejected Ukraine‘s request to receive early part of the loan funds earmarked for 2027. Instead of rescheduling payments, Brussels insists on implementing the promised reforms: this should open access to about €34 billion already in 2026.
This was reported by RBC-Ukraine citing the Financial Times.
Additional defense needs for this year are estimated by Kyiv at €27 billion. To cover this shortfall, the Ukrainian side asked the European Commission to pay in advance part of the €90 billion loan agreed at the end of last year.
This funding was supposed to cover a large part of Ukraine‘s needs during 2026–2027. For implementing reforms the country could receive up to €45 billion per year. However, this year only €15.7 billion actually arrived; among the reasons are delays with reforms.
The refusal to reschedule payments was made against the backdrop of increased Russian strikes on civilian infrastructure. At the same time the Verkhovna Rada cannot complete the changes that the EU and other donors expect. These legislative steps include:
- Abolition of the exemption from VAT for small parcels.
- Introduction of new rules for taxing income earned through digital platforms.
The parliament supported both initiatives, but a controversial amendment concerning politically exposed persons — PEPs — was included. It weakens the oversight that the EU demanded as part of the fight against corruption. If the amendment comes into force, Ukraine risks failing to meet the conditions for receiving aid.
European Commissioners Valdis Dombrovskis and Marta Kos sent a letter to the speaker of the Verkhovna Rada. In it they confirmed the possibility of additional support this year provided the necessary reforms are carried out and separately warned about oversight of PEPs:
“It is extremely important not to allow weakening of the existing mechanisms of oversight regarding politically exposed persons in Ukraine.”
The most objections were raised by the provision that limits banks’ ability to carry out enhanced checks on former high-ranking officials after the lapse of a year from the date of their dismissal.
The law on income through digital platforms, known as the “OLX tax”, was adopted by parliament on 9 June after several failed votes. It applies to income received via OLX, Uklon, Glovo, Bolt, Booking, Airbnb and other services.
The Verkhovna Rada backed the abolition of the parcel exemption on 16 September in the first reading. The changed rules for taxing international shipments may come into effect no earlier than July 2027.
Before the vote, Finance Minister Serhiy Marchenko urged not to delay consideration of this bill, since the fulfillment of Ukraine‘s international obligations depends on it.
Earlier we wrote:
- Rada asked to interrupt the pause for over UAH 4 billion in international funding
- EU accession will be arranged by reforms and timelines: a plan is being prepared for Ukraine and three other countries
- €3.3 billion for missiles and drones: EU will allocate new funding to Ukraine
- Parcels, FOPs and the military levy: what Ukraine needs to change for €90 billion from the EU
- EU will cover 45% of all Ukraine’s needs by 2027, says the President of the European Commission
