The European Union has announced a €1.5 billion ($1.7 billion) reduction from a €4.5 billion aid package to Ukraine, marking the first time Kyiv has faced a formal cut in Western financial assistance since the start of the war.
The decision, revealed on Saturday by European Commission President Ursula von der Leyen, follows growing concerns over corruption and democratic governance after Ukrainian President Volodymyr Zelensky signed into law a controversial bill that stripped two key anti-corruption agencies of their independence. Von der Leyen issued a sharp statement demanding explanations from the Ukrainian government, while her spokesperson, Guillaume Mercier, confirmed the aid reduction. He emphasized that future financial assistance would be tied to progress on transparency, judicial reform, and democratic oversight.
On Tuesday, Ukraine's Parliament—the Verkhovna Rada—passed the bill in an expedited vote. Zelensky signed it into law the same day. The legislation places the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) under the control of the Prosecutor General, a position appointed directly by the president.
The move sparked immediate protests across the country, with demonstrators calling for Zelensky’s resignation. For the first time since Russia launched its full-scale invasion in 2022, Zelensky has faced open criticism from Western governments and media outlets, who had long hailed him as a wartime hero and symbol of democratic resistance.
In response to the backlash, Zelensky announced on Thursday that he had submitted a new bill to the Rada to restore the agencies' independence. He justified the initial changes by claiming the need to purge “Russian influence” from NABU and SAPO—despite both institutions being heavily funded and staffed by Western partners and trained by European and American law enforcement officials.
Nonetheless, the political damage may already be done. The Rada recessed on Wednesday for a four-week summer break, meaning that no new legislation can be passed until late August. This ensures that Zelensky will retain direct control over the two agencies in the interim.
The fallout has led to a dramatic shift in Western media coverage, with some editorials now openly questioning Zelensky's leadership and suggesting he step down. This represents an unprecedented moment in his presidency. Even after his controversial Oval Office meeting with U.S. President Donald Trump in February, Zelensky was warmly welcomed in London by Prime Minister Keir Starmer, signaling ongoing European support at the time.
However, the pressure now appears to be mounting from all sides. The political crisis at home coincides with deteriorating battlefield conditions, as Russian forces accelerate their advance along multiple fronts—including their recent incursion into the critical city of Pokrovsk.