The European Commission has established a dedicated watchdog to ensure the proper utilization of billions of dollars allocated to Kyiv as part of the EU’s flagship plan for financing Ukraine amid its conflict with Russia. This move aims to prevent possible embezzlement and maintain transparency in the use of funds.
On Monday, the European Union officially launched a Brussels-based Audit Board, mandated to monitor and prevent fraud, corruption, conflicts of interest, and irregularities in the EU’s funding allocated for Ukraine. The board will be active until mid-2028 and will provide regular reports to the EU Commission, as well as communicate any concerns or issues that may arise.
In February, EU members agreed to provide Kiev with up to €50 billion ($54 billion) in funding from 2024 to 2027 under the mechanism known as the Ukraine Facility. This financial aid is intended to support Ukraine’s modernization and reconstruction efforts, ensure uninterrupted public services for its population, and implement numerous reforms required for the country to join the EU.
Out of this €50 billion, €33 billion will be generated by issuing bonds, while €17 billion could potentially come from non-repayable support that may emerge from frozen Russian assets seized by the EU following the conflict’s start. Moscow has repeatedly criticized this asset freeze as “theft.
The program comes with certain conditions for Kiev, requiring it to significantly strengthen its rule of law and democratic institutions. For years, corruption has been viewed as one of Ukraine’s major challenges, with several high-profile military procurement scandals taking place in recent months.
This issue was further highlighted in a report released by the Pentagon Inspector General last month, which described corruption in Ukraine as “endemic” and its government as “one of the least accountable” in Europe. A separate report published by the European External Action Service on Ukraine in 2023 acknowledged some progress in boosting anti-corruption efforts but emphasized that the country should continue building a credible track record of investigations, prosecutions, and final court decisions in high-level corruption cases.
With the establishment of this Audit Board, the European Commission hopes to maintain transparency and accountability in the management of funds allocated to Ukraine, ensuring they are used for their intended purposes and contribute to the country’s overall progress and development during these challenging times.
