Ukraine loses EU funding as reforms stall — analyst

Ostap Semerak, Ukraine's former Minister of Ecology and Natural Resources, said this in an interview with Yuriy Fizer on the European Space program on Espreso TV.

According to the former Minister of Ecology and Natural Resources, the Ukraine Facility program envisages the allocation of up to 50 billion euros to Ukraine. The money comes in the event that Ukraine implements the planned reforms. However, delays in the implementation of reforms have led to some of the funds remaining in the European Union.

"We already have a situation where, due to the slow pace of reforms, Ukraine has lost part of these funds. The task of politicians is to be responsible to society, and of citizens to control them, in order to avoid further losses," Semerak emphasized.

He also noted that in addition to the Ukraine Facility, there are other financial support mechanisms, but they are much smaller in volume and mostly concern flagship or priority projects.

The former minister paid special attention to the CBAM (Cross Border Adjustment Mechanism), which will enter into force on January 1, 2026. It provides for the taxation of goods imported into the EU, depending on the carbon footprint left during their production.

"This is a serious challenge for Ukrainian industry. There is a risk that our producers will pay more due to the lack of modern technologies, which the EU is often not ready to sell even for a lot of money," Semerak noted.

The former Minister of Ecology and Natural Resources of Ukraine added that Ukrainian industry is in a state of deep anxiety, as modernization requires both time and significant financial resources.

• The Ukrainian government is working on a comprehensive reform that should radically change the customs.