The Verkhovna Rada has ratified a €90 billion loan agreement with the European Union
This information was revealed in the bill’s summary on the parliament’s website.
The memorandum refers to an €8.35 billion macro-financial assistance loan to Ukraine from the EU — in three tranches.
Among other things, Ukraine has committed to:
- uphold effective democratic mechanisms and the independence of the National Bank, and not to repeal measures already implemented under loans from the EU or the International Monetary Fund (IMF);
- abolish tax exemptions on international parcels (with the exception of defence goods) and tax income generated through digital platforms; extend the 5% military levy for three years, adopt a new Customs Code and appoint a new permanent head of customs;
- Combat the fragmentation of business into sole traders (FOPs) who are taxed under preferential arrangements;
- introduce different tax rates for Group 3 sole traders — depending on their field of activity.
The memorandum with the EU echoes the IMF’s demands, which require Ukraine to introduce VAT on parcels up to €150 and abolish VAT exemptions for sole traders whose turnover exceeds 4 million hryvnias. Regarding the VAT requirement for sole traders, the Cabinet of Ministers and the IMF agreed to postpone it, whilst the Verkhovna Rada was unable to pass the law on tax on parcels on 26 May.
As a reminder, it was previously reported that the first tranche of the EU loan to Ukraine could be postponed until June 2026.
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