Kyiv is preparing a major tightening of legislation aimed at protecting the massive financial flows directed towards the country's reconstruction. The National Strategy for Combating Fraud, approved by the Cabinet of Ministers, has identified a critical level of embezzlement risks in the implementation of the Ukraine Facility program. To protect the interests of Ukraine and Brussels, the authorities plan to introduce separate criminal liability for the illegal use of European Union funds.
Risk of losing €50 billion
At the center of attention is the Ukraine Facility — a key EU financial instrument designed to support Ukraine during the war and ensure post-war reconstruction. The program covers the period from 2024 to 2027 and provides for the allocation of up to €50 billion in the form of grants and loans. However, according to government estimates, the probability of embezzlement of these funds is growing rapidly.
As noted by the Cabinet of Ministers, the vulnerability of the financial system is exacerbated by wartime conditions and the colossal volumes of international aid, creating ideal conditions for abuse. This is why protecting these assets has become a priority of the new strategy.
New articles in the Criminal Code
People's Deputy Olga Vasilevskaya-Smaglyuk confirmed that the Strategy implementation plan provides for the preparation of amendments to the Criminal Code and the Criminal Procedure Code of Ukraine. The main goal of the legislative innovations is to clearly define and tighten liability for illegal actions regarding funds received from the European Union.
Responsibility for drafting the relevant draft laws has been assigned to the Economic Security Bureau. It is expected that the new norms will allow for more effective prevention of attempts to misappropriate funds and guarantee their targeted use within the framework of the reform program.
Control over the use of EU aid is already being carried out through a special reporting mechanism and regular assessment of the progress of reforms, but the introduction of a separate criminal article will become an additional powerful tool in the fight against corruption.
