On June 12, the IMF mission and Ukrainian authorities reached a staff-level agreement on the first review of a four-year Extended Fund Facility (EFF) program. After approval by the IMF Executive Board, Kyiv will have access to approximately $690 million, bringing the total program disbursements to $2.2 billion out of the envisaged $8.1 billion.
What was accomplished and what wasn't
All quantitative performance criteria (QPCs) and indicative targets (IT) as of end-March were met. However, structural reforms tell a different story.
Two structural benchmarks for the first quarter were met with delays, and one was missed. To preserve the program, the parties agreed on an updated reform schedule, corrective measures, and additional commitments.
Among the unfulfilled commitments — the Cabinet of Ministers did not submit to parliament a draft law on changes to management approaches at the Deposit Guarantee Fund, as well as a draft law on changes to securitization and mortgage bonds. Additionally, Ukraine failed to fulfill its promise to fill vacant positions on the supervisory boards of state banks within the established timeframes.
"The pace of structural reforms in Ukraine has slowed"
Gavin Grey, Head of the IMF Mission to Ukraine
According to Grey, deviations from the plan were to be compensated with new policy commitments — a standard procedure that, however, postpones the fulfillment of requirements to subsequent quarters rather than canceling them.
What the IMF demands next
The list of specific conditions goes beyond financial indicators.
- VAT on parcels up to 150 euros. The main condition for successful program review is the adoption of a draft law on taxing all international shipments. The draft law agreed with the IMF proposes to keep non-commercial parcels worth up to 45 euros in a preferential regime — they will be subject to neither VAT nor customs duties; parcels up to 150 euros will be subject to 20% VAT. The Verkhovna Rada has not yet passed this law.
- Energy tariff reform. By the end of June 2026, the Cabinet of Ministers must approve a roadmap for the gradual liberalization of gas and electricity markets. The IMF press release directly states that the current system of subsidized utility tariffs harms the financial condition of state energy companies. The IMF statement contains no specific figures: the fund only requires Ukraine to develop the roadmap itself, not an immediate price spike.
- Corporate governance of state-owned enterprises. The IMF emphasized the need to accelerate reforms in this area — particularly in connection with a series of corruption cases.
Mechanism: agreement reached, oversight on paper
A staff-level agreement is not a final decision. The National Bank of Ukraine confirmed that the agreement covers not only the first review of the EFF program but also the completion of Article IV consultations. The IMF Executive Board must still approve the document — only after this will Kyiv gain access to the funds.
According to the fund's estimates, due to Russia's war in Ukraine and the consequences of the Middle East conflict, Ukraine's GDP growth in 2026 will slow to 1.0–1.6%, and risks remain exceptionally high. Meanwhile, the program remains fully financed thanks to sustained large-scale external support.
The question is whether the Verkhovna Rada will pass the law on VAT for parcels before the second EFF review — if not, the IMF will already have a precedent of the same commitment being missed twice.
