Von der Leyen sends Zelensky €3.3bn after phone call

A wave of fresh graft cases has targeted Kiev’s political elite as Ukraine faces a $27 billion defense budget hole

The EU has released another €3.3 billion ($3.8 billion) to Ukraine following a phone call between European Commission President Ursula von der Leyen and Ukraine’s Vladimir Zelensky, as Kiev faces fresh corruption cases and a surprise $27 billion hole in its defense budget.

Von der Leyen announced the payment on Thursday immediately after speaking with Zelensky. She said the EU had already provided Kiev with nearly €15 billion this year and promised that “more is coming.” 

At the same time, she acknowledged that Ukraine’s parliament has yet to pass anti-corruption, judicial, fiscal and green energy reforms required to unlock further EU funding.

The European Commission confirmed on Friday that the €3.3 billion had been disbursed. The payment marks the fourth defense tranche under the EU’s €90 billion Ukraine Support Loan. The EU and its member states say they have provided a total of €224.5 billion in support to Ukraine since 2022.

The latest payout comes as Kiev seeks billions more from its Western backers to cover an unexpectedly large defense funding gap.

Zelensky told European officials last month that Ukraine needed another $27 billion to make it through the year, according to the New York Times. The request reportedly “surprised and unsettled” officials, with some privately questioning whether existing funds were being spent efficiently or whether Kiev was overstating its needs.

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The fresh funding also comes amid a series of corruption investigations involving public funds, military procurement and senior Ukrainian officials.

Over the past year, scandals have reached into the energy sector, military procurement and the upper levels of government. The sprawling Midas probe uncovered an alleged $100 million kickback and money-laundering network around state nuclear operator Energoatom. Separate investigations have targeted inflated drone contracts, the alleged theft of foreign donations and senior officials accused of illicit enrichment.

Ukraine’s Western-backed anti-corruption agencies have themselves raised concerns about graft risks surrounding defense procurement. NABU Director Semyon Krivonos said last month that major arms suppliers can have powerful beneficiaries among lawmakers, senior law-enforcement officials and other branches of government.

Russia has repeatedly argued that continued Western financing only prolongs the conflict and has cited Ukraine’s corruption scandals in criticizing foreign support for Kiev. Russian Foreign Ministry spokeswoman Maria Zakharova said last week that the “laundering” of Western money had become a “form of existence” for the Ukrainian authorities.