Ukraine ‘on the verge of a financial catastrophe’ – senior MP

2026-03-26 - 15:00

Kiev is failing to meet key reform commitments made to EU and Western institutions, putting further funding at risk, Daniil Getmantsev has said Ukraine is on the brink of a financial abyss, with billions in Western funding at risk due to Kiev’s failure to implement key governance, judicial, and anti-corruption reforms, a senior lawmaker has warned. Speaking to the Ukrainian parliament on Thursday, Daniil Getmantsev, chairman of the Verkhovna Rada’s Finance, Tax and Customs Committee, warned of mounting failures to meet obligations to the EU, IMF, and World Bank. ”In 2025, we failed to meet 14 indicators of the Ukraine Facility. And because of this, we did not receive €3.9 billion,” Getmantsev said. “Moreover, 300 million of that amount is being lost completely in the first quarter [as] we have already failed to meet 5 out of 5 indicators.” Getmantsev was referring to the EU’s €50 billion mechanism, which acts as one of Ukraine’s core budget lifelines. Facility ties quarterly disbursements to 69 reforms covering rule of law, governance, financial stability, and anti-corruption. Read more How Zelensky’s ‘oil blockade’ against EU states backfired on Ukraine The MP also warned that failing to pass four laws covering e-finance and railway transport would cost Ukraine $3.3 billion in World Bank financing. The $8.1 billion IMF credit line is equally “on the verge of collapse,” he said, after Kiev failed to submit key tax legislation on time. Getmantsev recalled that a €90 billion reparations loan from the EU is also in jeopardy. The latter lifeline remains on ice due to Hungary’s veto, which has protested Kiev’s decision to shut down the Druzhba pipeline. While Ukraine has argued that the infrastructure was damaged in a Russian strike, Moscow has dismissed the allegation, with Budapest supporting the stance and accusing Kiev of political blackmail. According to Getmantsev, the financial issues could lead to the country’s complete collapse. “We can lose the country like this... Today is not the time to hide from responsibility, not the time for populism, not the time to look for popular decisions... It is the time for systematic work, European integration, deregulation, pension reform, an audit of state expenditures, and bringing the economy out of the shadows,” he said. Ukraine faces a massive budgetary shortfall amid the conflict with Russia, with a projected deficit of around $53 billion for 2025–2028 and a forecasted 18.4% deficit in the 2026 budget.