{"id":621827,"date":"2026-10-03T11:19:33","date_gmt":"2026-10-03T08:19:33","guid":{"rendered":"https:\/\/korabelov.info\/2026\/10\/621827\/no-money-upfront-eu-demands-reforms-to-finance-ukraine\/"},"modified":"2026-10-03T11:19:37","modified_gmt":"2026-10-03T08:19:37","slug":"no-money-upfront-eu-demands-reforms-to-finance-ukraine","status":"publish","type":"post","link":"https:\/\/korabelov.info\/en\/2026\/10\/621827\/no-money-upfront-eu-demands-reforms-to-finance-ukraine\/","title":{"rendered":"No money upfront: EU demands reforms to finance Ukraine"},"content":{"rendered":"<p><strong>The European Union<\/strong> has rejected <strong>Ukraine<\/strong>&#8216;s request to receive early part of the loan funds earmarked for <strong>2027<\/strong>. Instead of rescheduling payments, <strong>Brussels<\/strong> insists on implementing the promised reforms: this should open access to about <strong>\u20ac34 billion<\/strong> already in <strong>2026<\/strong>.<\/p>\n<p>This was reported by <strong>RBC-Ukraine<\/strong> citing the <a href=\"https:\/\/www.ft.com\/content\/bab346fd-7839-4812-ab27-19309e317938\"><strong>Financial Times<\/strong><\/a>.<\/p>\n<p>Additional defense needs for this year are estimated by <strong>Kyiv<\/strong> at <strong>\u20ac27 billion<\/strong>. To cover this shortfall, the Ukrainian side asked the <strong>European Commission<\/strong> to pay in advance part of the <strong>\u20ac90 billion<\/strong> loan agreed at the end of last year.<\/p>\n<p>This funding was supposed to cover a large part of <strong>Ukraine<\/strong>&#8216;s needs during <strong>2026\u20132027<\/strong>. For implementing reforms the country could receive up to <strong>\u20ac45 billion<\/strong> per year. However, this year only <strong>\u20ac15.7 billion<\/strong> actually arrived; among the reasons are delays with reforms.<\/p>\n<p>The refusal to reschedule payments was made against the backdrop of increased Russian strikes on civilian infrastructure. At the same time the <strong>Verkhovna Rada<\/strong> cannot complete the changes that the <strong>EU<\/strong> and other donors expect. These legislative steps include:<\/p>\n<ul>\n<li>Abolition of the exemption from <strong>VAT<\/strong> for small parcels.<\/li>\n<li>Introduction of new rules for taxing income earned through digital platforms.<\/li>\n<\/ul>\n<p>The parliament supported both initiatives, but a controversial amendment concerning politically exposed persons \u2014 <strong>PEPs<\/strong> \u2014 was included. It weakens the oversight that the <strong>EU<\/strong> demanded as part of the fight against corruption. If the amendment comes into force, <strong>Ukraine<\/strong> risks failing to meet the conditions for receiving aid.<\/p>\n<p>European Commissioners <strong>Valdis Dombrovskis<\/strong> and <strong>Marta Kos<\/strong> sent a letter to the speaker of the <strong>Verkhovna Rada<\/strong>. In it they confirmed the possibility of additional support this year provided the necessary reforms are carried out and separately warned about oversight of <strong>PEPs<\/strong>:<\/p>\n<blockquote class=\"quote-light\"><p>&#8220;It is extremely important not to allow weakening of the existing mechanisms of oversight regarding politically exposed persons in <strong>Ukraine<\/strong>.&#8221;<\/p><\/blockquote>\n<p>The most objections were raised by the provision that limits banks&#8217; ability to carry out enhanced checks on former high-ranking officials after the lapse of <strong>a year<\/strong> from the date of their dismissal.<\/p>\n<p>The law on income through digital platforms, known as the &#8220;OLX tax&#8221;, was adopted by parliament on <strong>9 June<\/strong> after several failed votes. It applies to income received via <strong>OLX<\/strong>, <strong>Uklon<\/strong>, <strong>Glovo<\/strong>, <strong>Bolt<\/strong>, <strong>Booking<\/strong>, <strong>Airbnb<\/strong> and other services.<\/p>\n<p>The <strong>Verkhovna Rada<\/strong> backed the abolition of the parcel exemption on <strong>16 September<\/strong> in the <strong>first reading<\/strong>. The changed rules for taxing international shipments may come into effect no earlier than <strong>July 2027<\/strong>.<\/p>\n<p>Before the vote, Finance Minister <strong>Serhiy Marchenko<\/strong> urged not to delay consideration of this bill, since the fulfillment of <strong>Ukraine<\/strong>&#8216;s international obligations depends on it.<\/p>\n<p><!-- website-article-source:f63989d00e73c3520d88c99d --><\/p>\n<p><strong>Earlier we wrote:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/korabelov.info\/en\/2026\/09\/620684\/the-rada-is-being-asked-to-end-the-pause-to-secure-more-than-uah-4-billion-in-international-financing\/\" target=\"_blank\" rel=\"noopener\">Rada asked to interrupt the pause for over UAH 4 billion in international funding<\/a><\/li>\n<li><a href=\"https:\/\/korabelov.info\/en\/2026\/09\/619894\/eu-accession-will-be-phased-according-to-reforms-and-timelines-a-plan-is-being-prepared-for-ukraine-and-three-other-countries\/\" target=\"_blank\" rel=\"noopener\">EU accession will be arranged by reforms and timelines: a plan is being prepared for Ukraine and three other countries<\/a><\/li>\n<li><a href=\"https:\/\/korabelov.info\/en\/2026\/09\/616689\/e3-3-billion-for-missiles-and-drones-eu-will-allocate-new-funding-to-ukraine\/\" target=\"_blank\" rel=\"noopener\">\u20ac3.3 billion for missiles and drones: EU will allocate new funding to Ukraine<\/a><\/li>\n<li><a href=\"https:\/\/korabelov.info\/en\/2026\/05\/590422\/parcels-sole-proprietors-fops-and-the-military-levy-what-ukraine-must-change-to-secure-e90-billion-from-the-eu\/\" target=\"_blank\" rel=\"noopener\">Parcels, FOPs and the military levy: what Ukraine needs to change for \u20ac90 billion from the EU<\/a><\/li>\n<li><a href=\"https:\/\/korabelov.info\/2023\/06\/399030\/ies-pokriie-45-usih-potreb-ukraini-do-2027-roku-prezident-ievrokomisii\/\" target=\"_blank\" rel=\"noopener\">EU will cover 45% of all Ukraine&#8217;s needs by 2027, says the President of the European Commission<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Brussels rejected Kyiv\u2019s request to advance part of the funds scheduled for 2027, and instead demands that the promised reforms be implemented to access \u20ac34 billion already this year.<\/p>\n<p>This concerns abolishing the VAT exemption for small parcels and taxing digital platforms \u2014 the Rada passed these laws, but with a controversial amendment that weakens oversight of politically exposed persons.<\/p>\n","protected":false},"author":12394,"featured_media":621790,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","tstyn_error":"","tie_post_sub_title":"An amendment on vetting former senior officials could put aid at risk"},"categories":[4612,4578],"tags":[4839,4682],"class_list":["post-621827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic","category-society","tag-aid","tag-eu"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.6 (Yoast SEO v28.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>No money upfront: EU demands reforms to finance Ukraine - \u041d\u043e\u0432\u043e\u0441\u0442\u0438 \u041d\u0438\u043a\u043e\u043b\u0430\u0435\u0432\u0430 c\u0435\u0433\u043e\u0434\u043d\u044f<\/title>\n<meta name=\"description\" content=\"Brussels rejected Kyiv\u2019s request to advance part of the funds scheduled for 2027, and instead demands that the promised reforms be implemented to access \u20ac34 billion already this year. 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