Monitoring the Implementation of the IMF Program and EU Assistance №26

In 2026, Ukraine is to fulfil a number of commitments related to the liberalisation of energy markets. In particular, the government is to develop plans for transitioning to economically justified tariffs and gradually phase out administrative price controls. At the same time, this does not mean introducing fully “market-based tariffs”: the reform envisages retaining mechanisms to protect vulnerable consumers.

The Verkhovna Rada has adopted only one of the four laws required to secure USD 3.35 billion from the World Bank. As a result, the risk of delays in financing remains high.

The introduction of value-added tax (VAT) for individual entrepreneurs may be postponed until 2027, although this commitment to the International Monetary Fund (IMF) remains in place. Overall, progress under the IMF programme over the past month has been minimal: the only achievement has been ensuring that the 5% military levy rate remains in effect, while Parliament has yet to adopt the other tax measures.

Under the Ukraine Facility, Parliament has finally adopted several bills that were due to enter into force in 2025, while the government has fulfilled a number of indicators scheduled for 2026. This made it possible to submit a report to the European Commission and receive its approval for the next tranche of around EUR 2.75 billion. This was made possible by amendments to the methodology for disbursing tranches, which allow indicators fulfilled ahead of schedule to be taken into account. At the same time, 11 indicators for 2025 and a further six indicators for the first quarter of 2026 remain unmet.