Ukraine: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

This program review is taking place as Ukraine approaches a critical juncture. Conditions of exceptionally high uncertainty remain as Russia’s war in Ukraine continues. Amid continuing attacks on energy infrastructure, comprehensive efforts to prepare for the ongoing winter, including the heating season, are underway. The social, humanitarian, and economic costs remain staggering and have only risen further. Abroad, political transitions or election cycles in key partners for Ukraine may trigger renewed efforts to end the war, as well as changes in the degree or modalities of international support, adding to the uncertainty around the outlook. Despite the risks and challenges, recent developments support completion of the review. First, the authorities have steadfastly implemented reforms despite the war, including enacting a tax package supporting the restoration of fiscal and debt sustainability. Second, the G7 has agreed on the US$50 billion Extraordinary Revenue Acceleration Loans for Ukraine (ERA) Initiative, and is finalizing its modalities, fulfilling an essential component of the program’s financing.