Bill on ratification of EU macro-financial aid agreement for Ukraine registered in parliament

A draft law on the ratification of the Loan Agreement in support of Ukraine between Ukraine, as borrower, and the National Bank of Ukraine, as the borrower’s agent, and the European Union, represented by the European Commission as lender, has been registered in the Verkhovna Rada.

Government bill No. 0376 was registered in parliament, according to the Verkhovna Rada website.

The document also provides for the ratification of the Memorandum of Understanding between Ukraine, as borrower, and the European Union, as lender, regarding the provision of macro-financial assistance to Ukraine under the Ukraine Support Loan.

Under the macro-financial assistance program, Ukraine is expected to fulfill structural benchmarks grouped by components.

In particular, this includes the abolition of the tax exemption for international parcels (except for defense-related goods); the introduction of taxation on income earned through digital platforms; the extension of the military levy at the 5% level for three years; and the harmonization of tax legislation with EU norms and anti-tax avoidance rules.

In the area of public finance management, the measures include updating the Public Finance Management Strategy, preparing the budget declaration for 2027-2029, and conducting public expenditure reviews to improve the efficiency of budget policy.

In terms of customs and institutional reform, the program provides for the adoption of a new Customs Code of Ukraine in line with EU standards, the appointment of the head of the State Customs Service, as well as the digitalization of customs administration and strengthening of the control system.

A separate section concerns IT and digital infrastructure for public finance management. It provides for the integration of public investment and public finance systems (including DREAM, the State Budget system, the Treasury system, Prozorro, and other IT solutions), the development of a unified information ecosystem for public investment management, as well as improving the compatibility of customs IT systems with European standards and risk management systems.

As reported, Ukraine and the EU completed negotiations on May 20 on the Memorandum of Understanding regarding EUR 8.35 billion in macro-financial assistance under the EU loan facility. The memorandum was signed by European Commissioner for Economy Valdis Dombrovskis, and the first disbursement is expected in June.

The 2026 macro-financial assistance package amounts to EUR 8.35 billion, which will be provided together with EUR 8.35 billion under the Ukraine Facility. In total, this will amount to EUR 16.7 billion in budget support, while defense assistance will reach EUR 28.3 billion. This means Ukraine is expected to receive EUR 45 billion in 2026.