The document now needs to be approved by the IMF board.
“Subject to approval by the IMF Executive Board, Ukraine would have access to about $690 million (SDR 503 million), bringing total disbursements under the program to $2.2 billion,” the statement said.
The IMF said all the program’s quantitative performance criteria and indicative targets as of the end of March were met. However, two structural benchmarks for the first quarter were implemented late and one was missed, prompting a revision of the timetable.
The fund warned that the outlook remains highly uncertain as the Russo–Ukrainian war continues to exact heavy costs on the Ukrainian people and economy. Despite difficult conditions, the IMF said the program remains fully financed thanks to sustained large-scale international support.
The IMF urged Ukrainian authorities to avoid overspending, be ready to mobilize additional domestic revenues, identify compensating savings, and increase domestic financing if needed.
“As expenditures will remain elevated over the medium term, including for defense and reconstruction, sustained efforts are needed to improve tax administration and tax policy in order to mobilize revenues,” the fund said.
Program commitments include ending the customs VAT exemption for parcels to close a loophole and curb nonessential imports, and measures to tackle international transfer pricing to prevent firms from using unfair tax arbitrage to avoid paying taxes in Ukraine.
Strengthening institutional reforms at the Economic Security Bureau and the State Customs Service will also help curb tax evasion, the IMF said.
In the energy sector, the IMF said focus is shifting to reforms to prepare for market liberalization. It noted that the current system of utility tariffs and associated public-service obligations has weakened the finances of state energy companies and limited resources for critical investment and repairs. With IMF technical assistance, authorities are preparing a roadmap for gradual energy-market liberalization that would include social-protection measures for vulnerable households.
“Once such mechanisms are ready and based on the roadmap, household tariffs should be gradually adjusted to address financial challenges facing the sector and better position it to attract investment,” the statement said.
“Enhancing the integrity and independence of the energy
regulator (NEURC) would further support the sector's long-term sustainability.”