Editor’s note: This is issue 29 of Ukrainian lawmaker Yaroslav Zhelezniak’s weekly "Ukraine Reforms Tracker" covering events from June 2–June 8, 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
Bureau of Economic Security director selection process is derailed by government-appointed members of the selection commission
The final stage of the competition to select the next Director of the Bureau of Economic Security (BES) is under threat of indefinite postponement, likely due to an instruction from the Presidential Office, according to parliamentary sources.
Final candidate interviews were scheduled to begin on June 8, but at the beginning of the commission’s meeting three government-appointed members of the selection commission disrupted the process, citing concerns over alleged links between certain candidates and the Russian state. The Internal Affairs Ministry representative requested that interviews be delayed until the Security Service of Ukraine (SBU) completes an additional review.
However, the Cabinet of Ministers had previously certified, based on the SBU feedback, that all candidates had passed background checks as of May 15.
A letter dated May 24, which the SBU sent to the commission to ask for more time for some additional checks, contained no specific allegations.
Moreover, the letter was only provided to the commission on June 5.
On June 7, government-appointed members issued a formal letter requesting postponement of the interviews until the Security Service of Ukraine (SBU) completes an additional review.
The vote to delay the interviews was supported only by the government representatives; all international commission members voted to proceed with them as planned.
As of June 10, government-appointed members have reportedly refused to attend, blocking quorum and preventing the process from advancing. According to MP Yaroslav Zhelezniak, the Presidential Office is fully informed of and most likely coordinating the obstruction.
Ukrainian Parliament advances IMF-linked bills
Ukraine’s Parliament passed several bills tied to commitments under the International Monetary Fund’s financial support program.
- In first reading: draft law #13302 on the establishment of a Specialized District Administrative Court and Specialized Administrative Court of Appeal, both based in Kyiv with nationwide jurisdiction.
- In final reading: draft law #13018-d on financial inclusion, which will allow Ukrposhta to provide basic banking services. Additionally, amendments introduced by MP Oleksii Movchan enable competitive sale and lease of state banks’ assets through Prozorro.Sale — a welcome measure to have more transparency and likely higher sale prices.
Energy Ministry faces scrutiny over moves to limit independent oversight of energy SOEs
Ukraine’s Energy Ministry has amended the statutes of several state-owned energy enterprises to introduce supermajority voting requirements for appointing senior management. New amendments effectively give state representatives veto power and limit the influence of independent supervisory board members.
The changes — targeting Gas TSO of Ukraine and Ukrenergo — were adopted without prior consultation with key international creditors such as the EBRD, EIB, and World Bank, nor with the EU Energy Community Secretariat, potentially breaching loan agreements and jeopardizing future financing.
The Ukrenergo supervisory board has initiated a review to determine whether the statute changes are legal.
Obligations to the EU
Ukraine’s government moves to address missed reform deadlines, but risks remain high
Ukraine’s Cabinet of Ministers plans to hold a meeting on June 10, to address delays in meeting key reform benchmarks tied to international financial support programs. The move comes amid growing concern that the government is falling behind on its commitments.
However, the parliamentary schedule suggests that several obligations under the Ukraine Facility other international programs of the financial support will be missed. Among those are, for example, ARMA reform (draft law #12374-d) that was due by April 1 or draft law on vocational education #13107-d that is due by July 1.
Other key economic issues
Business sees lack of political will, inefficient state apparatus, and corruption as top barriers to reform – ToP’s survey
In the second half of May, NGO Technology of Progress (ToP) and research agency Gradus surveyed 40 owners, executives, and top managers of medium and large businesses in Ukraine.
Forty-seven percent of respondents identified insufficient political will from the country's leadership as the primary barrier to reform. Another 40% cited the inefficiency of the state apparatus, while 32% pointed to both corruption and resistance from entrenched elites and vested interests.
The findings underscore growing disillusionment with political leadership, as well as persistent weaknesses in the state's institutional capacity and human resources management.
Click here to read the full report.
Parliament finalizes budget changes linked to the critical minerals agreement with the U.S.
Ukraine’s Parliament has passed Draft law No. 13256 in final reading (309 votes in favor), amending the Budget Code to implement the recently ratified U.S.-Ukraine Critical Minerals Agreement.
Under the new rules, 50% of revenues from future extractive activities — such as royalties, license fees, and state shares from production-sharing agreements — will be allocated to a dedicated state fund for channeling resources into Ukraine’s Recovery Fund.
Ukrainian Government allocates additional Hr 2.4 billion to cashback program
Ukraine’s Cabinet of Ministers has approved an additional Hr 2.4 billion for the national cashback initiative, a government-backed financial support mechanism for Ukrainian consumers. This move comes amid growing budgetary pressures highlighted by the finance minister.
On June 5 and 6, Finance Minister Serhii Marchenko addressed the Verkhovna Rada, emphasizing the urgent need to amend the 2025 State Budget law. According to Marchenko, current budget provisions are insufficient to meet the necessary funding requirements for the Armed Forces, prompting calls for legislative adjustments in the near term.
Head of antimonopoly committee faces new graft allegations
The National Anti-Corruption Bureau of Ukraine (NABU) and the Special Anti-Corruption Prosecutor’s Office (SAPO) have served a new notice of suspicion to the head of Ukraine’s Antimonopoly Committee over alleged failure to declare assets. His wife has also been charged with abetting illicit enrichment. Authorities allege the official omitted 20 real estate properties and a luxury vehicle registered under his wife’s relatives from his 2024 electronic asset declaration.
Olena Goncharova
