The International Monetary Fund (International Monetary Fund) and the Ukrainian government have reached a staff-level agreement that could unlock nearly US$700 million in financial assistance, Bloomberg News reported on Friday, citing people familiar with the matter.
The agreement, if approved, would pave the way for Ukraine to receive additional funding under its ongoing IMF-backed support programme as the country continues to manage the economic fallout from its war with Russia.
Reuters said it was unable to immediately verify the report.
The IMF has been one of Ukraine’s key external financial backers since the escalation of the conflict in 2022, providing budgetary support aimed at stabilising public finances, sustaining government operations and anchoring macroeconomic stability.
Staff-level agreements are an early but critical step in the IMF lending process. They indicate that IMF officials and national authorities have reached consensus on policy reforms and programme targets, but final approval still requires endorsement by the IMF’s Executive Board.
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Ukraine’s economy has remained under severe pressure due to ongoing military conflict, infrastructure destruction and disruptions to key sectors such as energy, agriculture and manufacturing. External financial assistance has therefore become essential to sustaining fiscal operations.
In recent years, Ukraine has relied heavily on a combination of IMF support, bilateral aid from Western partners and emergency financing to cover budget deficits and maintain currency and financial stability.
The latest reported agreement comes as Kyiv continues to implement structural reforms required under its IMF programme, including efforts to strengthen governance, improve tax collection and enhance transparency in public financial management.
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Ukraine has also been working to maintain macroeconomic stability amid high reconstruction needs, significant defence spending and persistent uncertainty over the duration and intensity of the conflict.
If approved, the US$700 million tranche would add to a broader package of international assistance designed to support Ukraine’s medium-term economic recovery and reform agenda.
Neither the IMF nor Ukrainian authorities immediately commented on the reported agreement.
