EU Sets 12 Reform Hurdles Before Releasing Ukraine's Next $3.7bn Aid

The European Commission has linked the next €3.7 billion installment of macro-financial assistance to twelve specific reforms that Kyiv must implement. This tranche follows a €3.2 billion payment made on 25 June and is part of a broader €90 billion loan package slated for 2026-27. While Brussels initially suggested a September payout, officials now say the only firm deadline is the end of the calendar year.

Among the conditions is a revision of Ukraine's VAT treatment for low-value parcels, aimed at increasing budget revenues. The Commission has not revealed how many of the twelve benchmarks have been satisfied to date. Separately, the EU Council approved nearly €3 billion under the Ukraine Facility after Ukraine met ten additional reform indicators, covering about 88 % of the Ukraine Plan steps. The next disbursement will occur once all conditions are verified, with the full €8.35 billion macro-financial assistance expected by year-end.