EU halts sending $1.7B in aid to Ukraine after bill passes politicizing anti-corruption agencies

The European Union has halted sending $1.7 billion in aid to Ukraine after President Volodymyr Zelensky approved a bill politicizing anti-corruption agencies.

The EU made the announcement on Friday that it was withholding 1.5 billion euros (or $1.7 billion) from the total 4.5 billion euros in funding that was meant to reward Ukraine for good governance standards, The New York Times reported.

The decision came after a new law was enacted on Wednesday that gives a politically-appointed Ukrainian prosecutor general more power over the country's National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO).

Following the first wartime protests against his administration, Zelensky quickly put measures in place to ensure the agencies' independence, but there are still concerns over his commitment to oust corrupt officials, according to the New York Post.

Last year, the EU created its Ukraine Facility fund to reward the country, pledging nearly $60 million over three years to help its war recovery efforts and prepare the country to enter the bloc. However, Ukraine has fallen short of EU standards.

The EU's decision to withhold some of the funds is not final and can be reversed if Ukraine meets its requirements, officials said.

EU commissioner for expansion, Marta Kos, said the bloc was “seriously concerned” about Ukraine’s move to politicize the two agencies tasked with prosecuting corruption.

Both NABU and SAPO were created after Ukraine’s “Revolution of Dignity” in 2014, when national leaders pledged to root out corruption after ousting pro-Russian President Viktor Yanukovych.

While Zelensky promised to continue the anti-corruption efforts, he criticized the agencies when they started investigating and charging people inside his inner circle, including former Deputy Prime Minister Oleksiy Chernyshov.

Zelensky had initially claimed that the two agencies needed to reined in to get rid of “Russian influence” within them and address why some cases have been stalled for years.

Earlier this month, the EU said that it remains "united and determined in our unprecedented support for Ukraine."

The bloc also touted that it made $400 million in April through the Ukraine Facility fund.