Ukraine pushes EU for more time on reform laws tied to financing; Brussels insists on continued reforms
President Volodymyr Zelensky met European Commission President Ursula von der Leyen on the sidelines of the UN General Assembly in New York and asked for greater flexibility on the deadlines for adopting reform-linked legislation tied to EU financing. The Commission reiterated that timely implementation of agreed reforms is the condition for continued payments under the €90 billion loan for 2026–2027. Zelensky cited wartime constraints — drone attacks forcing MPs into bomb shelters and funds redirected from military salaries to drones — as reasons the Verkhovna Rada cannot work as in peacetime.
Key points
- Zelensky asked von der Leyen for greater flexibility on deadlines for reform-linked laws tied to EU financing
- The first tranche discussed is €45 billion, half of the €90 billion EU loan split between 2026 and 2027
- Of the €45 billion allocated for 2026, nearly €15 billion has already been disbursed, with the EU aiming to disburse the full amount this year
- European Commission spokesperson Balázs Ujvári said timely fulfillment of agreed reforms is the key to continuing payments under the macro-financial assistance program and the Ukraine Facility
- Among the laws tied to EU financing is a controversial proposal to cancel duty-free imports of foreign-marketplace parcels valued under €150
- Zelensky said that in the first half of the year part of the funds planned for military salaries was redirected to drones
- Ukraine will send a financial team to the EU to discuss obtaining part of the funds from the second tranche planned for 2027
Why it matters
A substantial share of Ukraine's wartime financing from the EU depends on the Verkhovna Rada, Ukraine's parliament, passing specific reform-linked laws. Any delay risks slowing EU disbursements under the €90 billion loan for 2026–2027, while Kyiv argues that wartime conditions — drone attacks and budgetary pressure — make peacetime legislative timetables impossible. The exchange highlights the tension between Ukraine's wartime constraints and the EU's conditions for continued financial support.
What happened
On the sidelines of the UN General Assembly in New York, President Volodymyr Zelenskyy met European Commission President Ursula von der Leyen and asked for greater flexibility on the deadlines for adopting reform-linked legislation tied to EU financing. The discussion focused on the first tranche of €45 billion, half of the €90 billion loan allocated across 2026 and 2027, of which nearly €15 billion has already been paid out. Zelenskyy argued that the Verkhovna Rada cannot be expected to function as in peacetime because drone attacks force MPs into bomb shelters, and noted that funds originally planned for military salaries had been redirected to drones in the first half of the year. Ukraine also said it will send a financial team to Brussels to consider how to draw on the second tranche planned for 2027. The Commission, for its part, stressed through spokesperson Balázs Ujvári that timely reform implementation is the condition for continuing payments under the macro-financial assistance program and the Ukraine Facility. Commissioners Valdis Dombrovskis and Dubravka Šuica (Kos) sent a separate letter to the chairman of the Verkhovna Rada and the prime minister on the same point. Vice Prime Minister for European and Euro-Atlantic Integration Vsevolod Chentsov presented to the EU Council Working Group on Enlargement the state of Ukraine's fulfillment of obligations under the EU accession negotiation process.
How Ukrainian sources describe it
Ukrainian sources frame the talks as a constructive search for wartime flexibility rather than a standoff. They foreground Zelenskyy's argument that the Verkhovna Rada is constrained by drone attacks forcing deputies into bomb shelters and by fiscal pressure that saw military salary funds diverted to drones in the first half of the year. Ukrainian coverage also presents Zelenskyy's meeting with von der Leyen as positive, contrasting it with press characterizations of the encounter as difficult.
How international sources describe it
The European Commission's public posture emphasizes that Ukraine's significant reform efforts over the past four years are recognized, while continuing reform momentum remains a precondition for the planned disbursements under the macro-financial assistance program and the Ukraine Facility. The Commission has reiterated its full commitment to providing the €90 billion loan for 2026 and 2027 and aims to disburse the full €45 billion allocated for 2026.
Where reporting differs
Bloomberg reported ahead of the New York meeting that the Zelenskyy–von der Leyen encounter was tense. Zelenskyy publicly characterized the meeting as very positive and said he did not understand why the press had called it difficult.
Background
The EU has committed a €90 billion loan to Ukraine, split between 2026 and 2027, with €45 billion allocated for 2026 and roughly €15 billion already disbursed. Part of the funding is conditioned on Ukrainian legislation, including a controversial proposal to cancel duty-free imports of parcels from foreign marketplaces valued under €150. In the first half of 2026, Ukraine redirected part of the funds originally planned for military salaries toward drones, deepening the pressure on wartime finances.