Ukraine Reforms Tracker Weekly — Issue 28

Editor’s note: This is issue 28 of Ukrainian lawmaker Yaroslav Zhelezniak’s weekly "Ukraine Reforms Tracker" covering events from May 26–June 1, 2025. The digest highlights steps taken in the Ukrainian parliament related to business, economics, and international financial programs.

The Kyiv Independent is republishing with permission.

Benchmarks and soft commitments with the IMF

Think tanks urge government to launch customs reform as IMF deadline approaches

Key Ukrainian economic NGOs and think tanks are calling on the Cabinet of Ministers to form a selection commission for the head of the State Customs Service, as mandated by law.

Despite legal obligations and commitments to international partners, the government has yet to move forward with the process, which has remained on hold for five months. Failure to complete the appointment process could jeopardize Ukraine’s International Monetary Fund benchmarks.

Finance Minister Serhii Marchenko recently said the full-scale invasion by Russia had changed the reform’s context, and that broader structural changes are needed.

Ukrainian Government misses legal deadline for budget declaration approval

The Cabinet of Ministers of Ukraine has yet to approve the country’s medium-term Budget Declaration, despite a legal requirement to adopt the document by June 1. As of June 2, the document had neither been approved by the government nor registered in parliament. This marks the second consecutive year in which the deadline has been missed, despite the requirement being reinstated at the request of the Finance Ministry itself.

Customs-like delays nearly hit state audit reform, but parliament finally receives candidate list

Nearly a month after receiving names of international experts for the Accounting Chamber selection process, the Ukrainian government finally transmitted them to parliament. A six-member selection board will now be formed to launch the competition for new members of the Accounting Chamber.

Ukraine to restrict foreign currency bond sales to exchanges starting June 30

Starting June 30, Ukrainian investors will no longer be able to purchase government-issued FX-denominated domestic bonds (OVDPs) outside of licensed exchanges. The decision, adopted by the National Securities and Stock Market Commission, aligns with IMF requirements aimed at tightening capital controls and aligning financial company operations with banking regulations.

While the move is intended to curb currency manipulation by exporters, market participants warn it may complicate operations for institutional investors and dampen budget revenue flows. Monthly trade volumes for such instruments average $464 million and 200 million euros, according to the National Bank of Ukraine.

Obligations to the EU

ARMA reform bill pulled from parliament’s agenda once again

Ukraine’s delayed Asset Recovery and Management Agency (ARMA) reform has suffered another setback, as the draft law #12374-d was once again removed from this week’s legislative agenda.

The bill, which aims to overhaul ARMA, was expected to be considered in second reading. The bill — originally scheduled for a March deadline under the Ukraine Facility program — is a critical condition for unlocking part of the 12.5 billion euros in EU funding allocated to Ukraine in 2025.

The Verkhovna Rada also postponed President Zelensky’s alternative draft law #13268, focused narrowly on the management of Russian-linked assets. The legislation has drawn criticism for lacking comprehensive institutional reform.

As we reported in Issue 27, this week the parliament is set to vote on several other bills which are benchmarks for the Ukraine Facility and the IMF’s program. Among those are draft law #13165 and alternatives on improving judicial integrity declarations; draft law #12377 on establishing the fundamentals of national housing policy; draft law #9363 on the digitalization of enforcement proceedings; draft law #13018-d on financial inclusion.

Ukraine passes Budget Code changes to implement US mineral deal

The legislation, supported by 309 members of parliament, enshrines financial provisions critical to executing the U.S.-Ukraine deal signed on April 30 and ratified by Kyiv on May 8.

The Kyiv IndependentTim Zadorozhnyy