Overview
- The European Commission is discussing making about €8.4 billion in 2026 macro‑financial aid conditional on tax changes, according to reports.
- The plan would impose a 20% value‑added tax on firms using Ukraine’s simplified regime once yearly sales exceed UAH 4 million, a shift the Finance Ministry says could raise about 40 billion hryvnia a year.
- Commission spokespeople say they are finalising a memorandum of understanding and are aligning the reform list with the IMF.
- The IMF has paid out US$1.5 billion under its program, and roughly US$700 million next in line depends on VAT measures that Ukraine’s Parliament has resisted.
- Most of the €90 billion package is earmarked for defence and is not affected, and Ukrainian media report a first €6 billion military tranche is due by June to buy locally made drones.