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IMF drops prior actions for Ukraine’s $8.1bn program, delaying VAT for sole proprietors
The International Monetary Fund has taken an unprecedented step by scrapping prior actions for Ukraine’s new $8.1 billion lending program, postponing controversial tax measures for sole proprietors and easing other fiscal conditions amid wartime disruptions.
Expanded version (short):
Ukraine’s Prime Minister Yuliia Svyrydenko said the IMF agreed to move all four preconditions — VAT for sole proprietors (FOPs), customs duties on parcels, taxation of digital platforms, and the military levy — from mandatory “prior actions” to structural benchmarks to be fulfilled after the program is approved.
The decision followed negotiations with the Fund after IMF Managing Director Kristalina Georgieva visited Kyiv and assessed damage to Ukraine’s energy infrastructure caused by Russian strikes. The IMF board is expected to consider Ukraine’s program by the end of February, unlocking an initial tranche of about $1.5 billion.
The revised IMF framework is also expected to pave the way for major macro-financial support from the European Union in 2026–2027, while Kyiv prepares a consolidated “Beautiful Tax Bill” covering all deferred tax changes.
