Ukraine receives IMF cash cushion as huge funding gap remains unsolved
Ukraine received its first payment of $1.5 billion under a new International Monetary Fund program, Prime Minister Yulia Svyrydenko said on March 3 — but Kyiv is still waiting for the EU to lock in a critical loan to keep the war-torn country's finances afloat this year.
The IMF gave the green light to a new four-year lending agreement last week, days after Hungary stalled a European loan of 90 billion euros ($105 billion) intended to cover a large share of Ukraine's defense and budgetary needs through 2027. Without it, Ukraine's coffers could run dry by mid-2026.
Agreed at a summit in December 2025, European countries had hoped to give the final go ahead to the loan on Feb. 24 to mark the fourth anniversary of Russia's full-scale invasion, but the plans were torpedoed at the last minute by Hungary.
Budapest said it would block the loan until Russian oil started flowing through the Druzhba pipeline, which has been offline since late January after Ukraine said it was damaged by Russian attacks.
The pipeline, which runs through Ukraine, remains a key source of energy for Hungary and Slovakia, who accuse Ukraine of slow-walking repairs.
Hungarian Prime Minister Viktor Orban announced on Feb. 27 that Hungary and Slovakia would set up a joint inspection group to assess damage to the pipeline, but the status of such an initiative remains unclear.
European ambassadors, who have the power to make progress on the loan, will next meet on March 4. There is no indication yet whether the 90 billion euros loan will be discussed.
