On November 5, at the Civic Analytics Center "Vezha", Illia Neshchodovsky, head of the analytical direction at the ANS network, discussed Ukraine’s financial support from the European Union, the Ukraine Facility program payouts, reparation loan negotiations, budget sequestrations, and social payments.
The conversation examined the recent European Commission report on Ukraine's integration progress and related financial tranches. Ukraine expected to receive €2.4 billion but was allocated only €1.8 billion due to unfulfilled requirements, particularly in the judiciary. It was stressed that funds come with strict reform conditions, enabling effective monitoring of all obligations.
The discussion also addressed the budget sequestrations, which stem from increased defense spending. The Ministry of Finance underestimates defense needs in the budget, necessitating reallocations later under pressure from parliament. Some received international funds are earmarked and can’t be used for defense without specific agreement.
Significant attention was given to negotiations with Belgium and the EU on unfreezing the reparations loan, especially regarding who would bear legal responsibility and court costs if Russia files lawsuits. Belgium insists on guarantees and compensation, as income from frozen Russian assets is substantial for its budget.
Government initiatives for social payments were also discussed. Experts emphasized that humanitarian aid should be targeted at vulnerable groups rather than distributed to all citizens, to avoid criticism among European donors.
The issue of subsidies to "Ukrzaliznytsia" and free tickets, which could lead to new types of corruption due to lack of proper control and lack of targeting, was also considered.
The experts’ main thesis: for effective use of international aid and to prevent negative reactions from partners, conditions must be strictly observed, social support must be targeted, and clear financial management reforms must be carried out.
