Ukraine: 2023 Article IV Consultation, Second Review Under the Extended Arrangement Under the Extended Fund Facility, and Requests for Modification of Performance Criteria and a Waiver of Nonobservance of Performance Criterion-Press Release; Staff Rep

Russia’s war in Ukraine continues to have a devastating economic and humanitarian impact. The frontlines remain stalled as combat continues in eastern and southern Ukraine. Russia quit the Black Sea Grain Initiative (BSGI) in July and has stepped up attacks on Ukraine’s port infrastructure. The war is severely impacting human and physical capital, with large-scale loss of life, drop in living standards, rise in poverty, and damage to infrastructure. Despite the resilience of the Ukrainian people and the authorities’ skillful policymaking to maintain macroeconomic and financial stability, continuous external support is critical to help restore medium-term external viability, prepare the country for post-war recovery and reconstruction, and facilitate Ukraine’s path to EU accession for which the European Commission (EC) has recommended opening accession negotiations.