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EU to transfer about €600 million to Ukraine for ARMA reform

European Union, EU

The European Union will disburse nearly €2 billion to Ukraine under the Ukraine Facility mechanism, including a fifth tranche of €1.35 billion and around €600 million for previously completed reforms.

This is stated in a draft EU Council decision, Censor.NET reports, citing European Pravda.

The European Commission will transfer both payments simultaneously, the fifth tranche and part of the fourth. The total amount will be €1.949 billion, of which €597 million corresponds to the fourth tranche and €1.351 billion to the fifth.

€600 million from the EU for ARMA reform

The €600 million payment was promised by the EU for the reform of the Asset Recovery and Management Agency (ARMA). The law establishing the new agency was signed by the President in July 2025, although under Ukraine’s reform plan, it was supposed to happen earlier, in the first quarter of the year.

At the same time, part of the fifth tranche will be temporarily withheld, as Ukraine has yet to complete two reforms, the review of judges’ integrity declarations and the digitalization of enforcement proceedings. These must be finalized by the end of the second quarter of 2026; otherwise, the funds will not be disbursed.

The document also emphasizes that Ukraine continues to uphold the principles of democracy, rule of law, and human rights, a fundamental condition for receiving financial assistance from the EU.

Background

On Tuesday, November 4, the European Union will officially approve the disbursement of the fifth tranche of macro-financial assistance to Ukraine, €1.351 billion, under the Ukraine Facility mechanism.

Ukraine Facility

Ukraine Facility is a four-year, €50 billion macro-financial assistance program for Ukraine. The funds are provided on the condition that Ukraine continues democratic reforms, maintains a multi-party parliamentary system, ensures the rule of law, and respects human rights.