Ukraine: Fourth Review of the Extended Arrangement under the Extended Fund Facility, Request for Modifications of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

© 2024 International Monetary Fund IMF Country Report No. 24/199 UKRAINE FOURTH REVIEW OF THE EXTENDED ARRANGEMENT UNDER THE EXTENDED FUND FACILITY, REQUEST FOR MODIFICATION OF A PERFORMANCE CRITERION, AND FINANCING ASSURANCES REVIEW—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR UKRAINE In the context of the Fourth Review of the Extended Arrangement Under the Extended Fund Facility, Request for Modification of Performance Criterion, and Financing Assurances Review, the following documents have been released and are included in this package: • A Press Release including a statement by the Chair of the Executive Board. • The Staff Report prepared by a staff team of the IMF for the Executive Board’s consideration on June 28, 2024, following discussions that ended on May 31, 2024, with the officials of Ukraine on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on June 18, 2024. • A Staff Statement updating information on recent developments. • A Statement by the Executive Director for Ukraine. The IMF’s transparency policy allows for the deletion of market-sensitive information and premature disclosure of the authorities’ policy intentions in published staff reports and other documents. Copies of this report are available to the public from International Monetary Fund • Publication Services PO Box 92780 • Washington, D.C. 20090 Telephone: (202) 623-7430 • Fax: (202) 623-7201 E-mail: publications@imf.org Web: http://www.imf.org International Monetary Fund Washington, D.C. June 2024 PR24/252 IMF Executive Board Completes the Fourth Review of the Extended Fund Facility Arrangement for Ukraine FOR IMMEDIATE RELEASE • The IMF Board today completed the Fourth Review of the extended arrangement under the Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about US$2.2 billion (SDR 1.66 billion) to Ukraine, which will be channeled for budget support. • Ukraine’s performance remains strong under the EFF despite challenging conditions. All quantitative performance criteria for end-March were met, and all structural benchmarks through end-June were implemented on time or with a short delay. • The Ukrainian economy continues to be resilient although the outlook remains subject to exceptionally high uncertainty. Sustained reform momentum and timely disbursement of external support are necessary to safeguard macroeconomic stability, restore fiscal and debt sustainability, and enhance institutional reforms to lay the path to European Union accession. Washington, DC – June 28, 2024: The Executive Board of the International Monetary Fund (IMF) today completed the Fourth Review of the EFF arrangement for Ukraine, enabling the authorities to immediately draw US$2.2 billion (SDR 1.66 billion), which will be channeled for budget support. This will bring the total disbursements under the IMF-supported program to about $7.6 billion. Ukraine’s 48-month EFF arrangement, with access of SDR 11.6 billion (equivalent to US$15.6 billion, or about 577 percent of quota), was approved on March 31, 2023, and forms part of a US$122 billion support package for Ukraine. The authorities’ IMF-supported program aims to anchor policies that sustain fiscal, external, price and financial stability at a time of exceptionally high uncertainty, supports the economic recovery, enhances governance and strengthens institutions to promote long-term growth in the context of reconstruction and Ukraine’s path to EU accession. All quantitative performance criteria and all but one indicative targets for end-March were met; the one indicative target was missed by a small margin. Structural benchmarks through end-June were implemented on time or with a short delay, underscoring the authorities’ continuing commitment to an ambitious reform agenda. The economy was more resilient than expected in the first quarter of 2024, with robust growth outturns, continued disinflation, and the maintenance of adequate reserves. However, the outlook for the remainder of the year and into 2025 has worsened since the Third Review, largely due to devastating attacks on Ukrainian energy infrastructure and uncertainty about the length of Russia’s war against Ukraine; overall, the outlook remains subject to exceptionally high uncertainty. 2 Following the Executive Board discussion on Ukraine, Ms. Kristalina Georgieva, Managing Director of the IMF, issued the following statement1: “Russia’s invasion of Ukraine continues to have a devastating social and economic impact on Ukraine. Despite the war, macroeconomic and financial stability has been preserved through skillful policymaking by the Ukrainian authorities as well as substantial external support. The economy remains resilient, reflecting the continued adaptability of households and firms. Ukraine’s performance and commitment under the program continues to be strong