Ukraine and EU discuss flex on reform-linked laws as Zelensky flags rising war costs
President Volodymyr Zelensky said Ukraine needs greater flexibility from the EU on deadlines for adopting reform-linked legislation tied to a 45 billion euro financing tranche, warning that the cost of the war is rising and that funds once earmarked for military salaries were redirected to drones in the first half of the year. The European Commission stressed that continued reforms remain the condition for payments under the macro-financial assistance and Ukraine Facility programs. Zelensky described his meeting with European Commission President Ursula von der Leyen on the sidelines of the UN General Assembly as "very positive," though Bloomberg had reported the talks as tense.
Key points
- Zelensky raised the issue during a briefing in the USA, with the recording distributed by the Office of the President.
- The first financing "layer" under discussion is 45 billion euros — half of a 90 billion euro EU loan planned across 2026 and 2027.
- Of the 45 billion euros allocated for 2026, the EU has already disbursed almost 15 billion euros.
- Zelensky said the systemic cost of the war has risen, requiring more weapons and interceptors per day than before.
- In the first half of the year, part of the funds planned for military salaries was redirected to drones, creating a gap that now needs to be filled.
- Part of the 45 billion euros is tied to draft laws the Verkhovna Rada, Ukraine's parliament, must adopt.
- Ukraine discussed with von der Leyen greater flexibility on the timing of those laws and will send a financial team to the EU to explore access to the second tranche planned for next year.
Why it matters
EU payments to Ukraine under the macro-financial assistance and Ukraine Facility programs are conditional on Ukraine passing specified legislation, so any slippage in law adoption directly affects cash flow to the budget. The first 45 billion euro tranche of this year's EU loan is already partly in motion — about 15 billion euros has been disbursed — making the remaining sums materially important for covering wartime spending. At the same time, Ukraine's financing needs are growing: Zelensky pointed to higher daily consumption of weapons and interceptors and to a hole in the military salary budget after funds were diverted to drones in the first half of the year. The exchange also exposes a tension between Brussels' insistence on reform momentum and Kyiv's argument that war conditions, including deputies sheltering from drones, make normal parliamentary functioning impossible.
What happened
President Volodymyr Zelensky, speaking at a briefing in the United States whose recording was distributed by the Office of the President, said Ukraine is negotiating with the European Commission over greater flexibility in the deadlines for adopting reform-linked legislation tied to EU financing. The first "layer" of financing under discussion is 45 billion euros, half of a 90 billion euro EU loan split across 2026 and 2027, of which the EU has already disbursed almost 15 billion euros this year. Part of the 45 billion euros is conditioned on draft laws the Verkhovna Rada must adopt, and Zelensky acknowledged the parliament will support them but argued wartime conditions — including deputies having to shelter from drone attacks — prevent it from working as it would in peacetime. He also said funds planned for military salaries in the first half of the year had been redirected to drones, creating a budget gap that now needs to be filled, and warned that the systemic cost of the war has risen, requiring more weapons and interceptors per day than before. Ukraine plans to send a financial team to the EU to explore how to access part of the second tranche planned for next year.
How Ukrainian sources describe it
The Ukrainian-language coverage centers on the negotiations over reform-linked legislation, foregrounding Ukraine's wartime constraints and the scale of EU financing — the 45 billion euro first tranche and the broader 90 billion euro loan. One of the articles also widens the policy scope beyond reform legislation to include other items on the negotiating table, such as duty-free imports of parcels valued under 150 euros from foreign marketplaces.
How international sources describe it
The framing reflected in the European Commission's statements centers on the EU's conditions for continued disbursements: timely implementation of agreed reforms is described as the key to payments continuing on schedule, with reform momentum explicitly stressed even as the Commission acknowledges Ukraine's efforts under difficult circumstances. This framing brings in the broader Ukraine Facility and macro-financial assistance programs and the formal letter from EU Commissioners Dombrovskis and Kos to the Chairman of the Verkhovna Rada and the Prime Minister of Ukraine on the need to continue reforms. The Commission also raised these points directly with Zelensky in the meeting on the sidelines of the UN General Assembly in New York.
Where reporting differs
The two sides frame the Zelensky–von der Leyen meeting differently. Zelensky described it as "very positive" and said he did not understand why the press had called it difficult, while Bloomberg reported ahead of the meeting that the talks were tense.
Background
The EU has planned a 90 billion euro loan to Ukraine across 2026 and 2027, with the first 45 billion euro tranche allocated for 2026. Part of that money is conditioned on the Verkhovna Rada adopting specific draft laws. Zelensky raised financing and reform-timeline issues in a meeting with European Commission President Ursula von der Leyen on the sidelines of the UN General Assembly in New York, and EU Commissioners Dombrovskis and Kos sent a separate letter to the Chairman of the Verkhovna Rada and the Prime Minister of Ukraine stressing the need to continue reforms.