IMF Begins Ukraine Programme Review, Paving Way for $1.67 Billion Funding

KYIV: The International Monetary Fund (IMF) has begun reviewing Ukraine’s lending programme, a process that could unlock $1.67 billion in fresh financing as the country struggles with the economic impact of its war with Russia.

Cooperation with the IMF remains critical for Ukraine. The lender’s support helps secure additional financing from international partners and maintain economic stability.

The review comes as Kyiv faces a multi-billion-dollar funding shortfall for next year.

IMF Review to Cover Economic Policies and Reforms

The review combines the second and third assessments of Ukraine’s four-year IMF programme. Its completion could clear the way for the disbursement of approximately $1.67 billion.

“Discussions will cover macroeconomic and fiscal policies, as well as key structural reforms,” IMF Resident Representative in Ukraine Priscilla Toffano said in a statement.

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Prime Minister Sergii Koretskyi said the discussions would also address the national budget and international financial assistance for 2027.

The Ukrainian central bank said IMF representatives and government officials would meet in Lviv and Warsaw. Some experts would join the discussions online.

War Deepens Pressure on Ukraine’s Economy

Ukraine’s economy has faced mounting pressure after more than four years of war. Intensified Russian air strikes have targeted businesses, energy infrastructure and sectors that generate government revenue.

The economy contracted in the third quarter of this year, with gross domestic product (GDP) falling 0.7% year-on-year. The central bank expects the economy to shrink by 0.4% in 2026.

Inflation is also rising and could reach 12.5% this year.

Export difficulties have added to the pressure. Disruptions to shipments through Black Sea ports have affected trade, while the agribusiness and steel industries, two major export sectors, continue to face severe challenges.

Lower-than-planned budget revenues have further complicated the government’s finances.

Ukraine Faces $70 Billion Funding Gap in 2027

Ukrainian officials estimate that the country will face a financing gap of around $70 billion next year.

The IMF review is therefore important for securing further international assistance and supporting the government’s financial needs.

The outcome could help Kyiv strengthen its budget position as the war continues to weigh on economic activity, exports and public finances.