E.U. Cuts Aid to Ukraine Over Corruption Concerns

President Volodymyr Zelensky’s anticorruption policies have already provoked Ukraine’s first antigovernment protests since the Russian invasion in 2022. Now, it seems, they may cost the country a portion of its foreign aid from the European Union, in a clear rebuke from the bloc, once a staunch ally.

The European Union said on Friday that it would withhold 1.5 billion euros, or $1.7 billion, from an overall fund of 4.5 billion euros whose disbursement is dependent on achieving good governance standards and that can’t be used for military purchases. The decision is not final, however, and the funding can be restored if Ukraine meets certain benchmarks.

While holding back Western aid to spur reform was common before Russia’s invasion, Friday’s decision seemed to signal a new willingness by the bloc to admonish Mr. Zelensky’s government on domestic policy during the war. It also raised questions about whether the glow around Mr. Zelensky might be beginning to dim among Ukraine’s Western allies.

The E.U.’s decision capped a tumultuous week for Mr. Zelensky, who first pushed a measure through Parliament that stripped the independence of two anticorruption agencies, raising protests from foreign leaders as well as the Ukrainian people.

He then reversed course, submitting a new bill to Parliament to restore the agencies’ independence. That calmed the street protests, but could not head off the E.U.’s aid cut, which had already been decided on the basis of longstanding guidelines.

The two agencies — the National Anticorruption Bureau of Ukraine and the Specialized Anticorruption Prosecutor’s Office — had been investigating top ministers in the Zelensky government. The president’s decision to kneecap them, though reversed, prompted accusations of cronyism that jeopardized backing from civil society groups at home and Western nations bankrolling the war.

The European Union established this aid mechanism, the Ukraine Facility, last year and promised 50 billion euros over three years for repairing war damage and preparing the country for E.U. accession. The European Commission spokesman, Guillaume Mercier, told journalists in Brussels on Friday that Ukraine had requested a disbursement in June despite falling short on three of 16 benchmarks, including failing to make appointments to a specialized anticorruption court.