The head of the International Monetary Fund, Kristalina Georgieva, arrived in snow-covered Kyiv on Thursday for high-level talks with Ukrainian leaders, underscoring the central role international financing continues to play as the country enters the fourth year of Russia’s full-scale invasion.
Georgieva is scheduled to meet President Volodymyr Zelensky, Prime Minister Yuliia Svyrydenko, senior government officials, and business leaders during a tightly secured, one-day visit, IMF officials said.
The trip comes just weeks before Ukraine marks the fourth anniversary of the invasion, and amid mounting economic and infrastructure strain.
The visit follows Zelensky’s declaration of a state of emergency in the energy sector, aimed at accelerating repairs to electricity networks damaged by renewed Russian attacks. Severe winter conditions have further complicated recovery efforts, with nighttime temperatures plunging to nearly minus 20 degrees Celsius, slowing reconstruction of thousands of damaged residential buildings.
At the center of the discussions is a prospective four-year IMF lending program worth $8.2 billion, which Ukraine and the Fund reached at the staff level in November 2025. The agreement remains contingent on parliamentary approval of the state budget, enhanced donor financing assurances, and progress on structural reforms.
IMF officials expect the program to be presented to the Fund’s executive board in the coming weeks. Approval would be a pivotal step for Kyiv, unlocking additional external financing needed to bridge funding gaps estimated at $136.5 billion through 2029, assuming the war continues.
Georgieva last visited Ukraine in February 2023 and has personal ties to the country; her brother was in Kharkiv when Russian forces launched the invasion, lending added significance to her return amid ongoing hostilities.
As the conflict approaches its fifth year, the war continues to cast a long shadow over Ukraine’s economy. The government is expected to allocate the bulk of its 2026 revenues, estimated at 2.8 trillion hryvnias, or roughly 27.2% of GDP, to defense spending, limiting fiscal space for reconstruction and social support.
During the visit, Georgieva will assess Ukraine’s progress on key policy commitments, including approval of the 2026 budget, broadening the tax base to strengthen revenues, and securing sustained external support on near-grant terms.
As part of the preliminary IMF agreement, Ukrainian authorities committed to accelerating efforts to combat tax evasion and avoidance, alongside measures to reduce the size of the informal economy, which remains characterized by a high share of unregistered businesses and limited financial transparency.
While some legislative proposals are expected to reach parliament, the IMF does not anticipate significant revenue gains before 2027. Kyiv has also pledged to preserve the independence of anti-corruption institutions and address gaps in the current labor law framework, longstanding concerns among international partners.
Ukraine has made parallel progress in securing European support. Last month, EU leaders approved a €90 billion loan package spanning two years, structured so that repayment would only be required if Russia pays war reparations, effectively shielding Ukraine’s budget from additional debt burdens.
Kyiv has also completed the restructuring of $2.6 billion in growth-linked debt instruments, easing longer-term pressures after warning such liabilities could have reached as much as $20 billion by 2041.
The proposed IMF program would replace the current four-year, $15.5 billion arrangement, of which $10.6 billion has already been disbursed, that was originally predicated on the war ending in 2025. The new framework assumes the conflict may conclude this year but also includes a downside scenario in which hostilities gradually subside without fully ending until 2028.
Source: Reuters
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