Media reports: EU to freeze some Ukraine funds unless anti-graft agency independence is restored  

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**EU Sends Warning to Ukraine: Restore Anti-Corruption Agencies’ Independence or Face Funding Freeze**

The European Union has issued a stern warning to the Ukrainian government through diplomatic channels, stating that it will freeze some financial assistance if a bill restoring the independence of Ukraine’s principal anti-corruption bodies is not passed. This comes as the Ukrainian parliament prepares to vote on the new bill on July 31.

According to reports by European Pravda and Ukrainska Pravda, EU sources have revealed that if the controversial legislation curtailing the independence of anti-graft agencies is not rolled back, the EU will halt funding under the G7’s Extraordinary Revenue Acceleration (ERA) loan. This financing program uses frozen Russian assets to provide aid to Ukraine.

Additionally, funding via the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) would also reportedly be paused. However, it is worth noting that funds allocated under the EU’s Ukraine Facility program are not expected to be affected by this freeze.

**The Backlash Against Ukraine’s Anti-Corruption Legislation**

Last week, Ukraine passed legislation granting sweeping new powers to the prosecutor general over the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO). This move has been met with widespread criticism both at home and abroad.

President Volodymyr Zelensky announced that a new bill restoring the agencies’ independence was submitted to parliament on July 24, following EU criticism and mass protests across Ukraine. The European Commission had previously denied any consideration of funding cuts in response to the new bill.

**The Significance of this Development**

This development is significant because it highlights the EU’s growing concern about Ukraine’s commitment to anti-corruption reforms. As a major supporter of Ukraine during Russia’s full-scale invasion, the EU has provided $180 billion in military, economic, and humanitarian aid since 2022.

Furthermore, Ukraine’s accession efforts could be hampered by this legislation, as EU leaders have signaled that it could hinder Kyiv’s progress towards joining the bloc. The initial negotiations were formally launched in mid-2024, but Hungary has blocked the opening of the first negotiations cluster with Ukraine, making any progress uncertain.

**What’s Next?**

The Ukrainian parliament is set to vote on the new bill on July 31. If passed, it would restore the independence of NABU and SAPO. However, if the legislation remains unchanged or the agencies’ independence is not fully restored, the EU may freeze some financial assistance as a consequence.

This development serves as a reminder that the international community will continue to hold Ukraine accountable for its commitment to democratic values and anti-corruption reforms.

Read More @ kyivindependent.com

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