An International Monetary Fund (IMF) team led by mission chief Gavin Gray arrived in Kyiv on Wednesday for a high-level staff visit to evaluate Ukraine’s macroeconomic stability and the progress of critical structural reforms, the Fund’s press service announced in a statement.
The IMF Resident Representative Priscilla Toffano, after warning about the risk of Ukraine receiving funding, confirmed that the team would hold meetings with authorities and other stakeholders starting on March 18. The Fund representatives have clarified to Kyiv Post that this is a staff visit intended for dialogue rather than a formal negotiating mission for a program review.
“An IMF team, led by Gavin Gray, starts meetings today in Kyiv with the Ukrainian authorities and other stakeholders in the context of an IMF staff visit. The discussions will cover macroeconomic policies and key structural reforms, “ Toffano is quoted by the IMF in a press release.
According to the Memorandum of Economic and Financial Policies, the first and second reviews of the program will happen on or after June 1 and September 1, 2026, respectively. These assessments will be based on quantitative targets set for end-March and end-June 2026.
The stakes for these reviews are exceptionally high. As Kyiv Post previously reported, internal friction has grown between the administration and lawmakers.
President Volodymyr Zelensky recently expressed frustration with opposition members failing to support critical bills, while reports have surfaced of private tensions between the presidency and Finance Minister Serhiy Marchenko over the “unpopular conditions” tied to the IMF program.
Members of parliament explain their reluctance to support the government’s legislative initiatives by pointing to a perceived contradiction in policy. MP Yaroslav Zheleznyak previously wrote that one of the reasons why Ukraine`s parliament does not support the government`s bills is because the Cabinet of Ministers of Ukraine continues to support IMF calls to raise taxes for businesses and households, but the money is being spent on unnecessary initiatives.
The government simultaneously directs state funds toward its own domestic programs, such as the “National Cashback”, which provides for the return of a percentage of the cost of purchasing goods made in Ukraine.
What can representatives of the IMF and Ukraine discuss
The primary focus of the discussions might be a package of tax measures that Kyiv committed to pass by the end of March. Under the terms of the $8.1 billion four-year lending program, the Ukrainian parliament must adopt legislative amendments to bolster domestic revenue.
Earlier this month, Ukraine`s parliament, the Verkhovna Rada, rejected a bill about taxing digital platforms. The government intended to use that legislation as a vehicle for three other major initiatives, requested by the IMF: eliminating VAT exemptions for imported parcels valued under €150 ($178), introducing mandatory VAT registration for sole proprietors (FOPs) with turnovers exceeding Hr. 4 million ($92,000) starting January 2027, and extending the 5% military levy (war tax) even after the martial law ends.
After the bill failed, the Ukrainian government was supposed to prepare a comprehensive replacement, unofficially called “one big beautiful deal,” which includes all the tax reforms described above. Despite a deadline of the end of the month, no such initiative has been officially registered in parliament.