The Verkhovna Rada ratified the Memorandum with the EU on the Ukraine Support Loan, which defined the conditions for providing budget support under the macro-financial assistance program in 2026. The conditions for receiving the first tranche have mostly been met, the subsequent tranches involve the adoption of more complex decisions.

The Verkhovna Rada has adopted another of the four laws necessary to receive $3.35 billion in funds from the World Bank. This is the draft law on public procurement, which also corresponds to indicator No. 8.6 of Ukraine Plan with a deadline of implementation in the third quarter of 2027.

Ukraine has not made progress in implementing the IMF’s structural benchmarks, although the mission has already begun the first review of the Program. Therefore, there will either be delays in the review or postponement of the deadlines for implementing tax changes.

Ukraine still has a long way to go in meeting many indicators under the Ukraine Plan. There are high risks that Ukraine will not meet all indicators of the Ukraine Plan in Q2 2026.

Laws for receiving assistance from the World Bank

IMF

IMF program: risk for revision

The IMF mission has begun work on the first review of the Program.

  • Ukraine did not fulfill tax benchmark, but fulfilled two milestones with the delay
  • A number of commitments made within the framework of the Program were also not fulfilled

Two options are possible:

  • Delay with the review
  • Flexibility from the IMF and the postponement of unfulfilled benchmarks to later dates

Tax obligations still outstanding

The VRU did not vote on taxation of income from digital platforms and parcels up to EUR 150.

The  cancellation of VAT for individual entrepreneurs on the simplified taxation system is likely to be postponed until later.

EU

Ukraine’s plan : Almost no progress

  • On May 27, the parliament adopted a draft law on public procurement (indicator 8.5 with a deadline of Q3 2027). Its implementation will likely be taken into account in the next report.
  • In May, there was no progress on the implementation of indicators that were delayed.

First quarter 2025:

  • 4.3. Increase the staff of the VAKS ~€0.3 bn

Q2 2025:

  • 3.5. Changes regarding the review of judges’ declarations of integrity and their verification (No. 13165-2 ) ~€0.3 bn



Monitoring of macro-financial assistance: Ukraine Support Loan

  • The EU has approved a support program for Ukraine – Ukraine Support Loan – for 2026-2027:
    • EUR 30 bn – budget support, EUR 60 bn – military aid (in 2026, respectively
      EUR 16.7 bn and EUR 28.3 bn)
  • 2026: budget support equal from EU consists of macro-financial assistance + Ukraine Facility
  • May 28: Draft law on the ratification of the macro-finance approved
  • By the end of 2026 (subject to fulfillment of obligations):
    • First tranche – EUR 3.2 bn
    • Second tranche – EUR 3.7 bn
    • Third tranche – EUR 1.45 bn

For all: adherence to the principles of democracy and the rule of law, a mandatory IMF program.

SPECIAL TOPIC — «Ukraine at URC 2026: what do we have, what do we want»

You can view the previous monitors on the website RRR4U

The monitoring was prepared with the support of the International Renaissance Foundation.

RRR4U (Resilience, Reconstruction and Relief for Ukraine) is a consortium of four Ukrainian civil society organisations: Centre for Economic Strategy, Institute for Economic Research and Policy Consulting, Institute of Analytics and Advocacy and DiXi Group.

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