Jens Asbjørn Bøgen
The problem is found within the Ukrainian parliament.
Hungary and Slovakia continue to block the €90 billion loan from the EU to Ukraine, as well as new sanctions imposed on Russia.
On March 16, Reuters reported that Hungary vowed to continue blocking the EU loan for Ukraine until the disputed Druzhba pipeline (vital for Russian oil to flow to Hungary) is restarted.
The pipeline has been suspended since late January, according to Ukraine, due to damage caused by a Russian strike. However, Hungary and Slovakia blame Ukraine for keeping the pipeline shut, even though it is functional.
But now Ukraine is facing a potentially unexpected obstacle regarding another billion-euro loan.
$8.1 billion loan on the ropes
The International Monetary Fund (IMF) has raised concerns about whether Ukraine can secure the remaining funds from its $8.1 billion program, Bloomberg reported.
The IMF said Ukraine’s parliament, the Verkhovna Rada, must approve several legislative measures by the end of March to unlock further disbursements under the four-year agreement.
“I can say that I am concerned,” said Priscilla Toffano, the IMF’s resident representative in Ukraine, according to RBC-Ukraine.
Delays raise concern
The proposed measures include tax increases affecting both businesses and individuals, forming part of the conditions for continued financial support.
However, resistance within parliament has stalled progress. Some lawmakers have opposed the measures, signaling defiance toward President Volodymyr Zelenskyy and raising the risk of legislative paralysis.
According to Bloomberg, IMF officials led by mission chief Gavin Gray are set to meet Ukrainian lawmakers from March 18 to push forward discussions and secure commitments.
Budget pressures mount
The delays come as Ukraine faces broader financial uncertainty.
National Bank head Andriy Pyshnyi indicated that if funding shortfalls deepen, the central bank may resume direct financing of the government, a step previously used during wartime pressures.
This adds urgency to passing reforms tied to IMF support, which are intended to stabilize Ukraine’s budget.
Political tensions rise
Disagreements between government leaders and parliamentarians continue to complicate the situation, with some lawmakers resisting proposed tax changes despite mounting pressure.
President Zelenskyy responded sharply to the delays, stating: “If you do not serve the state in parliament, then serve the state on the front lines.”
The IMF program, approved for four years, includes an initial tranche of about $1.5 billion already disbursed in early March.
Future payments depend on reforms such as introducing VAT for certain entrepreneurs, taxes on online sales, duties on international parcels, and making the military levy permanent.
All measures must be adopted before the end of March to keep funding on track.
Sources: Bloomberg, IMF, RBC-Ukraine, Reuters
