---
title: "Kyiv and the IMF: Conditions for Receiving $690 Million and Tough Tax Reforms"
description: "Ukraine and the IMF have agreed on the first review of the financing program: Kyiv will receive $690 million subject to tough reforms. 🇺🇦💰 Plans include abolishing parcel benefits, transitioning to market energy tariffs, and combating tax evasion. The Fund's Executive Board will approve the decision next month."
date: 2026-06-12T18:28:00.000Z
lang: en
url: https://xab.info/en/posts/kyiv-and-the-imf-conditions-for-receiving-690-million-and-tough-tax-reforms
tags: []
publisher: "XAB.info"
---

# Kyiv and the IMF: Conditions for Receiving $690 Million and Tough Tax Reforms

![Ukrainian finance minister in a yellow blouse discusses conditions for receiving $690 million from the IMF and tax reforms](https://xab.info/media/2026/06/13/ukraina-i-mvf-usloviya-polucheniya-690-mln-i-zhestkie-nalogovye-reformy/ukraina-i-mvf-usloviya-polucheniya-690-mln-i-zhestkie-nalogovye-reformy-1.webp)

Ukraine and the International Monetary Fund (IMF) have reached a preliminary agreement on the first review of the Extended Fund Facility (EFF) program. This development paves the way for Kyiv to receive a new tranche of financial assistance totaling $690 million. However, to unlock these funds, Ukrainian authorities must navigate a complex path of implementing large-scale structural reforms.

The agreement, reached at the staff level of the Fund, requires approval by the IMF Executive Board. The meeting intended to finalize the legitimacy of the fund allocation is scheduled for next month. If all procedures are successfully completed, the tranche will become a critical resource for stabilizing the country's economy.

### Tough Fiscal Block: Closing Loopholes

The central element of the cooperation program is the mobilization of state budget revenues. The IMF insists on strict expenditure containment while simultaneously increasing domestic receipts. A key tool in this regard is the optimization of tax administration and the closure of existing legal loopholes.

One of the most notable steps will be the abolition of VAT exemptions for international parcels. This measure aims to limit the use of tax loopholes and reduce the volume of imports that previously evaded taxation. Experts note that this should significantly replenish the treasury and level the playing field for domestic and imported goods.

Furthermore, the focus has shifted to combating international tax evasion. This involves curbing transfer pricing schemes and tax arbitrage, which allow companies to artificially lower their tax base.

Special attention is being paid to the reform of the simplified tax system. Authorities must prevent abuses such as artificial business splitting and the substitution of labor relations with cooperation with individual entrepreneurs. In parallel, the modernization of tax administration is planned, transitioning to a risk-based approach, which will reduce the burden on bona fide taxpayers.

### Energy and Social Guarantees

In the energy sector, reforms are aimed at transitioning to market-based tariffs. Ukraine must prepare a roadmap for the gradual phase-out of the Public Service Obligation (PSO) system, which currently constrains the profitability of state energy companies.

However, the IMF emphasizes that price liberalization must not negatively impact the population. The reform must be accompanied by the creation of mechanisms for targeted social support for vulnerable households. This will help minimize the negative consequences of tariff increases for the most vulnerable segments of society. Additionally, the independence of the National Commission for State Regulation in the Energy and Utilities Sectors (NKREKU) is scheduled to be strengthened.

### Anti-Corruption and Public Administration

The anti-corruption block of the program provides for further strengthening of the electronic asset declaration system. The implementation of a risk-based approach to audits should make the process more effective and transparent.

Significant changes are expected in the sphere of corporate governance of state-owned enterprises and banks. The reform aims to accelerate transparent competitive selection of leadership, strengthen the role of independent supervisory boards, and increase management accountability.

Within the agreed schedule, Ukraine is obliged to fulfill additional political commitments, as well as catch up on reforms planned for the first quarter but not implemented on time. Previously, the IMF has demonstrated flexibility by agreeing to postpone the deadline for adopting the law on the taxation of international parcels until the end of July, which helped avoid the failure to receive the previous tranche.