Ukraine Reforms Tracker Weekly — Issue 38
Editor’s note: This is issue 38 of Ukrainian lawmaker Yaroslav Zhelezniak’s weekly "Ukraine Reforms Tracker" covering events from Sept. 11–25, 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
IMF benchmarks and soft commitments
Ukraine Cabinet submits draft 2026 state budget to parliament
Ukraine’s Cabinet of Ministers has submitted the draft state budget for 2026 to parliament, setting the stage for weeks of debate and amendments. Until Oct. 1, lawmakers will have to submit changes before the Budget Committee prepares its proposals and conclusions by mid-October. Parliament is expected to approve the budget framework by Oct. 20 in what amounts to the first reading, with final passage due by Nov. 20.
The plan envisions total spending of Hr 4.8 trillion ($115 billion), up Hr 415 billion ($9.9 billion) from 2025. Defense and security outlays will reach Hr 2.8 trillion ($66.7 billion), a Hr 168.5 billion ($4.0 billion) increase.
Revenues are projected at Hr 2.82 trillion ($67.1 billion), supported by higher VAT receipts, personal income tax from military salaries, and record transfers from the central bank of Hr 146 billion ($3.5 billion). For the first time, the budget explicitly forecasts Hr 60 billion ($1.4 billion) in revenue from reducing smuggling and improving customs operations. The government also expects $45.5 billion in external financing from donors and international financial institutions.
GDP is projected at Hr 10.3 trillion ($245.2 billion) in 2026, with growth of 2.4% and inflation at 9.9% by year-end.
Obligations to the EU
Ukraine fails to pass EU-linked agriculture bill
Ukraine’s parliament has rejected draft law #13202-1, aimed at aligning agricultural support programs with EU standards under the Ukraine Facility. The bill received just 204 votes, short of the 226 needed for approval. The measure was one of several reforms that had an end-September deadline under the EU-backed plan, which Kyiv has already missed.
In the meantime on a positive side, Ukraine’s parliament has adopted draft law #13302, establishing specialized district and appellate administrative courts in Kyiv with nationwide jurisdiction.
Other key issues
SBU searches ex-detectives of NABU
The National Anti-Corruption Bureau of Ukraine (NABU) reported that on Sept. 25, the Security Service of Ukraine (SBU) carried out searches targeting its former detectives, who are now employed at state-owned Ukrzaliznytsia. NABU linked the raids to what it sees as mounting pressure on anti-corruption institutions.
The Anti-corruption Action Center (AntAC) said that the SBU also searched the home of the brother of AntAC board member Olena Shcherban. Shcherban currently serves as the defense lawyer for NABU detective Mahamedrasulov, who has been held in pre-trial detention since July and was involved in documenting cases related to businessman Tymur Mindich, seen as close to the Presidential Office.
Her brother, a former NABU detective, had been handling the case of Artem Shylo — a notorious ex-SBU officer mentioned in numerous media anticorruption investigations and a former adviser to the Presidential Office.
The SBU, for its part, stated that the searches at Ukrzaliznytsia officials’ homes were part of a criminal investigation into alleged abuses in the freight transportation sector and dismissed claims that they were linked to pressure on anti-corruption bodies.
