Ukraine has failed to meet key reform commitments under its programme with the International Monetary Fund, raising uncertainty over future disbursements despite continued external support, reported Ukraine Business News.

According to analysts, the government and the Verkhovna Rada did not complete any of the three structural benchmarks scheduled for the first quarter of 2026 under the IMF’s Extended Fund Facility (EFF). The delays were attributed largely to political resistance to unpopular tax measures and slow progress in filling senior government positions.

Ukraine has already received an initial unconditional tranche of $1.5bn under the programme. However, the next disbursement of $690mn is contingent on meeting tax and institutional reform conditions that were due by the end of March.

One of the central requirements was the adoption of a comprehensive tax reform package. Lawmakers were expected to approve measures including the removal of value-added tax exemptions under the simplified tax regime, the introduction of a tax on income earned via digital platforms, new duties on postal parcels, and the establishment of a permanent military levy. None of these measures were passed within the deadline.

Institutional reforms have also lagged. Authorities missed a February deadline to tighten procedures for appointing supervisory board members at state-owned banks, a step seen as critical to improving corporate governance. In addition, the government failed to appoint a new head of the State Customs Service through a transparent and competitive process by March, another key IMF requirement.

The missed targets highlight the challenges Kyiv faces in advancing politically sensitive reforms while managing a wartime economy and maintaining public support.

Nevertheless, some progress has been noted. Experts pointed out that the government refrained from introducing new currency or import restrictions, measures that could have destabilised markets. The cabinet also approved procedures for developing and overseeing public investment strategies, signalling some alignment with broader reform goals.

The IMF programme is a cornerstone of Ukraine’s financial stability, providing not only direct funding but also a framework for broader international support. Analysts warn that continued delays in meeting reform conditions could complicate future disbursements and weigh on investor confidence.