Ukraine News Updates - July 24, 2025
Protests Against Law Curtailing Anti-Corruption Agencies
On July 22, protests erupted across multiple Ukrainian cities against Law No. 12414, which diminishes the independence of the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) by transferring key powers to the Prosecutor General. Demonstrators urged President Zelensky to veto the law. The European Commission expressed concern over the law’s impact on Ukraine’s rule of law and anti-corruption reforms. Despite opposition, the president signed the law, which heightened public protests and raised questions about the future of Ukraine’s anti-corruption institutions and its compliance with EU standards. Later, on July 23, the president announced plans to propose a new law to the Verkhovna Rada that will ensure the independence of anti-corruption institutions.
Ukraine and France to Establish €200M Recovery Fund
Ukraine and France agreed to create a €200 million fund to support critical infrastructure and key economic sectors, launching in 2026 with project financing from 2027. The fund will include co-financing from government, private sectors, and donors. A new intergovernmental agreement will deepen cooperation in defense, energy, transport, digital technology, agriculture, and critical minerals, aiming to attract investment and integrate Ukraine into European markets.
NBU Maintains Key Rate at 15.5%
The National Bank of Ukraine kept the key interest rate at 15.5% to support currency stability and manage inflation expectations. The decision maintains borrowing costs high and supports deposit yields. This measure aims to keep inflation trending down toward the 5% target, with annual inflation currently at 14.3%. The policy signals continued tight monetary conditions to ensure price and exchange rate stability.
Ukraine Introduces Moratorium on Unjustified Business Inspections
The National Security and Defense Council of Ukraine introduced a decree enacting a moratorium on unjustified inspections and state interference in business activities to improve economic conditions during martial law. The moratorium restricts checks on low-risk and authorized economic operators, except in high-risk sectors like excisable goods. The government will update risk assessment methods and prepare deregulation proposals, with the measure effective until at least July 2026.
Ukraine, U.S. Agree on Drone Production Deal
Ukraine and the United States reached a political agreement to invest in Ukrainian drone production for U.S. use. The deal includes expanding manufacturing in Ukraine and involves technical negotiations led by Ukraine’s Defense Minister. It aims to exchange Ukrainian drones proven in combat for U.S. weapons, supporting defense cooperation and modernization efforts. Detailed implementation plans are pending further discussions.
Quantum Systems Invests in Ukrainian Drone Startup
German drone manufacturer Quantum Systems acquired a 10% stake in Ukrainian DefenceTech company Frontline, with an option to increase to 25% in 12 months. The investment supports scaling production of bomber drones, reconnaissance drones, and grenade-launching turrets. Quantum Systems operates an R&D center and factory in Ukraine and has previously invested about €7 million locally. Frontline recently closed an $800,000 seed round with Ukrainian and international investors.