EU warns Ukraine of possible withdrawal of financial support due to law on NABU and SAPO

The European Union has warned Ukraine of a possible suspension of financial support if the Verkhovna Rada does not repeal the provisions of draft law No. 12414 that restrict the independence of the National Anti-Corruption Bureau (NABU) and the Specialised Anti-Corruption Prosecutor's Office (SAP).

This was reported by sources of «Ekonomichna Pravda» in the government and parliament, as well as sources of «Evropeiska Pravda» in EU structures.

According to journalists, on 24 July, EU representatives informed the government through diplomatic channels of the decision to suspend financial assistance to Ukraine until the situation is resolved. The information was confirmed by at least four sources in government, diplomatic and parliamentary circles.

European officials do not rule out that at the next meeting of the Verkhovna Rada on 31 July, MPs may not approve any of the proposed bills to restore the independence of anti-corruption bodies, or may approve documents with amendments that would negate the relevant changes.

In the event of a negative scenario, the EU will stop providing funding under the ERA programme, which provides for the use of proceeds from frozen Russian assets. Support from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) will also be suspended.

At the same time, according to «Evropeiska Pravda», funding under the Ukraine Facility programme, which depends on the overall progress of reforms, is not currently planned to be suspended.

Earlier, President of Ukraine Volodymyr Zelenskyy said that the law on the independence of the NABU and the SAPOwould be adoptedthis week.

It should be noted that the Parliament will consider the presidential bill to restore the independence of the National Anti-Corruption Bureau (NABU) and the Specialised Anti-Corruption Prosecutor's Office (SAP) on 31 July.

The day before, President Volodymyr Zelenskyy said that he had already agreed on the text of a new draft law that would «strengthen» the independence of the anti-corruption bodies and that he would submit it to the Verkhovna Rada on 24 July.

Late in the evening of 22 July, it became known that President Zelenskyy had signed Law 12414, which allows the Prosecutor General to control the anti-corruption agencies NABU and SAPO.

This decision caused massive outrage among the people. After the Verkhovna Rada voted for the law, protests were held in Kyiv, Lviv, Odesa, Dnipro and Sumy, demanding that it be vetoed. On 23 July, residents of Mykolaiv came out to protest.

Searches of NABU and SAPO offices

On 21 July, officers of the Security Service of Ukraine and the Prosecutor General's Office began conducting searches of the National Anti-Corruption Bureau in several regions of Ukraine. As explained, the investigative actions were part of a special operation to neutralise Russian influence on the NABU. They noted that the suspicions relate, among other things, to high treason, illegal trade with Russia and corrupt actions in the interests of oligarchs.

Later, the SBU detained Ruslan Magamedrasulov, one of the heads of the NABU's interregional detective department. He is suspected of doing business with Russia and aiding the aggressor state.

Responding to this, the NABU called the searches unreasonable and likely to harm the investigation. In most cases, according to the anti-corruption agency, investigative actions were carried out without court orders. The security forces cited, among other things, the involvement of some NABU employees in road accidents as grounds. The Specialised Anti-Corruption Prosecutor's Office also reported a similar inspection. They stressed that such visits contradicted established legal procedures.

According to the prosecutor's office, during the inspection, SSU officers gained access to information on all covert and operational activities carried out by the SAPO and the National Anti-Corruption Bureau. This happened when the leadership of both institutions was on a business trip abroad.

Later, it became known that the State Bureau of Investigation had served three employees of the National Anti-Corruption Bureau of Ukraine with suspicion notices in connection with their involvement in road accidents that resulted in injuries.

Following the NABU's accusations, the Security Service of Ukraine stated that it did not have access to covert investigations conducted by the NABU and the Specialised Anti-Corruption Prosecutor's Office. This accusation was called groundless and manipulative. The Security Service of Ukraine also detained an employee of the closed unit of the National Anti-Corruption Bureau of Ukraine «D-2», who is suspected of working for the FSB.

The next day, on 22 July, the Verkhovna Rada Committee on Law Enforcement supported amendments to the CPC that could make the NABU and the SAPO dependent on the decisions of the Prosecutor General. It was supported by 263 MPs at the Rada meeting.

This decision was also supported by all MPs from Mykolaiv.