IMF prepares new support program for Ukraine amid prolonged conflict
The International Monetary Fund (IMF) has initiated the development of a new financial assistance program for Ukraine, taking into account the expectation that the ongoing war could last until at least the end of 2026.
This decision is driven not only by escalating military actions but also by significantly lowered economic growth forecasts for Ukraine due to destructive Russian attacks on energy infrastructure, which cause severe hardship for civilians and disrupt vital services.
According to Alfred Kammer, director of the IMF’s European Department, the updated outlook reflects the Ukrainian government’s stance that the conflict will extend at least until 2026.
In response to these challenges, Ukraine has approached the IMF for a new support package aimed at stabilizing the economy amid uncertainty and ongoing hostilities.
Talks regarding macroeconomic parameters and potential structural reforms have already commenced but are still at an early stage, requiring coordination with international partners and donors.
Among the possible sources of funding, the IMF is considering the option of utilizing frozen Russian assets.
However, experts emphasize that any decisions regarding these assets must be based on strict legal grounds to avoid repercussions for the global financial system.
Currently, approximately $5 billion of Russian assets are frozen in the United States, with around €210 billion blocked across European Union countries.
The IMF also urges Ukraine to continue implementing critical reforms in anti-corruption, public administration, and institutional development sectors to aid economic stabilization and recovery.
It is expected that soon the IMF Managing Director Kristalina Georgieva will visit Kyiv to discuss the details of a new loan package that could prove vital for Ukraine’s resilience and recovery in these challenging times.