Ukraine’s parliament passed a package of legislation on Thursday designed to advance the conditions set by the European Union and the International Monetary Fund for continued financial support, as the war with Russia, now in its fifth year, drives a widening budget crisis.
Lawmakers approved bills to raise taxes on foreign parcels, increase e-commerce transparency, and amend financial monitoring rules for politicians. Finance Minister Sergii Marchenko said the laws establish a modern model for taxing e-commerce in line with the European Union’s approach, and that the reform is part of the cooperation programme with the IMF and a condition for macro financial support from the EU. Bloomberg reported that the raft of laws helps unlock a 4.3 billion euro tranche of EU funds.
The fiscal pressure behind the votes is acute. The government was forced last month to delay some budget spending, including reconstruction work and winter preparations, because of a liquidity crisis, and domestic tax revenue fell by 32 billion hryvnias in August and September as Russian strikes intensified against infrastructure, logistics and businesses. Prime Minister Sergii Koretskyi said the week’s parliamentary work gave the government cause for optimism but that substantial work remains to meet all lender requirements.
Status: bills passed by parliament on October 15; disbursement follows EU and IMF review of the conditions, and further measures in the wider reform package remain outstanding.