Brussels sets conditions for Ukraine payments: ending VAT exemption on parcels and PEP oversight

The continuation of financial support for Ukraine by the European Union in 2026 depends on the implementation of specific reforms. Brussels has clearly outlined a list of requirements, the fulfilment of which will be key to unlocking the next tranches of aid.

Key conditions from Brussels

As reported by the Financial Times, citing a letter from members of the European Commission to the Speaker of the Verkhovna Rada, Ruslan Stefanchuk, European officials emphasised three priority areas:

• the abolition of the value added tax (VAT) exemption for small parcels;
• the introduction of new rules for the taxation of digital platforms;
• the maintenance of current requirements for the financial monitoring of politically exposed persons (PEPs).

The document, signed by European Commissioners Valdis Dombrovskis and Marta Kos, states that maintaining the financial control system for PEPs is a necessary condition for the continuation of support for Kyiv.

Position on the 'Kachka-Kos package'

It is worth noting that the list of conditions published by the Financial Times does not include the bills of the so-called 'Kachka-Kos package'. These documents concern the procedure for competitive selection of personnel and the role of international experts in this process.

At the same time, experts remind that the absence of these bills in the public list does not mean that the issue of their adoption is being ignored in the context of further financing. There is currently no definitive confirmation that the EU will make the adoption of these specific documents a fundamental condition for payments, but the topic remains in the sights of European partners.

Financial indicators for 2026

According to the publication, as of now, Ukraine has already received €15.7bn of the financing planned for this year. The total volume of aid the country may receive in 2026 amounts to up to €34bn. The possibility of receiving the remaining funds is directly linked to the status of the implementation of the agreed reforms.