MOSCOW, July 29. /TASS/. The European Union informed Ukraine on July 24 that all financial assistance has been "put on hold" pending the resolution to concerns over the independence of the country’s anti-corruption agencies, the Ekonomicheskaya Pravda (or Economic Truth) newspaper reported, citing sources within the Ukrainian government, parliament and diplomatic circles.

The suspension primarily affects the ERA program (Extraordinary Revenue Acceleration for Ukraine) program, which was to provide 17.2 billion euro in emergency loans funded by frozen Russian assets until end of year, and the Ukraine Facility program, which was to allocate 12.5 billion euro in financial support.

The Ukrainian parliament is set to review the draft law aimed at guaranteeing the independence of the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO), on Thursday, July 31. Since no aid tranches were expected in the coming days, the passage of the new law in the Verkhovna Rada could lead to a resumption of EU funding, eliminating any real consequences of the debacle for Kiev.

The situation with NACB and SACPO

Vladimir Zelensky has long tried to establish control over NACB and SACPO, but they remained independent. On June 23, NACB filed corruption charges against Alexey Chernyshov, who at that time served as Deputy Prime Minister and Minister of National Unity of Ukraine. Chernyshov is considered a very influential figure in Zelensky’s circle, and this has escalated the conflict. According to the opposition-minded deputies, anti-corruption authorities could soon bring charges against other persons close to Zelensky.

On July 21, the Security Service searched NACB employees, and came to SACPO with an inspection. The next day, the Rada, where the majority of deputies belong to the Zelensky-controlled party, adopted a law to eliminate the independence of NACB and SACPO. That evening, about 2,000 Kiev residents took to the streets to rally against the decision. Rallies were held in other cities. However, Zelensky signed the law, which came into force on July 23 triggering new protests.

Kiev was also criticized in the West for the decision. In this situation, Zelensky changed his position and already on July 24 submitted to parliament a bill on the so-called strengthening of the powers of anti-corruption bodies, which, in fact, reversed the previous decision to limit the independence of NACB and SACPO. At the same time, in six months, according to the draft law, the SBU will inspect the employees of these agencies.