‘Zelensky’s Thousand’ in doubt: the IMF’s condition for the Pension Fund of Ukraine
This is set out in Ukraine’s updated memorandum with the IMF, published on 21 July.
The document sets out a new continuous structural benchmark – a commitment that Ukraine must adhere to throughout the duration of the Extended Fund Facility (EFF) programme.
The authorities have agreed to avoid decisions that create additional expenditure commitments for the Pension Fund beyond the overall limit set by its budget. This refers, in particular, to unscheduled increases in payments outside the parameters of the pension reform.
Such decisions may be considered following prior consultations with the IMF and an analysis of their impact on the Pension Fund’s long-term financial sustainability.
Consequently, the memorandum does not impose an absolute ban on any new payments. It requires the authorities to identify the source of funding in advance, assess future expenditure and ensure that the Pension Fund does not incur unfunded liabilities.
Will pension indexation be abolished?
Annual pension indexation will continue. The memorandum specifically states that the restriction does not apply to statutory indexation, which is carried out according to a set formula.
Furthermore, the new condition does not apply to payments provided for by law to people who have suffered as a result of the war.
Pensioners do not need to submit additional applications or reapply for their benefits. Pensions already awarded and statutory supplements will not be cancelled due to the introduction of the new structural benchmark.
What will happen to ‘Zelensky’s thousand’?
The programme known as ‘Zelensky’s thousand’ is not specifically mentioned in the memorandum. It is therefore incorrect to claim that the IMF has already banned or cancelled such a payment.
At the same time, RBC-Ukraine sources familiar with the outcome of the negotiations believe that the new condition may complicate the repeat of one-off payments of 1,000 hryvnias to pensioners, should they again be made at the expense of or through the Pension Fund’s budget.
To introduce such a programme, the government will have to demonstrate that it will not breach the Pension Fund’s established spending limit, or find a separate source of funding. If the payment requires additional funds from the Pension Fund, the decision will be discussed in advance with the IMF.
Thus, ‘Zelensky’s 1,000’ has not been scrapped, but the possibility of introducing a new programme will depend on its financial model and the availability of funds in the budget.
Which payments may require approval
The new condition applies primarily to initiatives not covered by current legislation or the Pension Fund’s budget. These could include new one-off payments, unscheduled top-ups or indexation outside the established formula.
Prior consultation will also be required if the Pension Fund of Ukraine is asked to fund a social programme that does not directly relate to pension provision.
Separately, Ukraine has undertaken not to introduce new special pensions and benefits without adequate funding, not to adopt laws that create unfunded pension liabilities, and not to lower the statutory retirement age.
How long will the restriction apply?
The Extended Fund Facility (EFF) programme was approved in February 2026 for a period of 48 months – until February 2030. As the requirement has the status of a continuous structural benchmark, it must be complied with for the duration of the programme, unless the parties subsequently revise the terms.
The aim of the restriction is to prevent the Pension Fund from accumulating a deficit ahead of the planned pension reform. The government must ensure that new decisions do not create expenditure that the state will be unable to finance sustainably in the coming years.
Following the first review of the programme, Ukraine gained access to a new IMF tranche of around $690 million. The total amount of disbursements under the current programme has reached $2.2 billion.
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