Three years of war have taken a staggering social, humanitarian, and
economic toll. Efforts to end the war, and potential changes to international support
retain the exceptionally high uncertainty to the outlook. Yet, the authorities’
commitment to reforms and fulfillment of all necessary Fund policies support
completion of the review. First, the authorities, despite some slippages in the
governance sphere, have continued to implement important reforms, including
adopting the landmark reform for new administrative courts; they will also enact a law
on tobacco excise taxes (prior action). Second, individual agreements under the
US$50 billion Extraordinary Revenue Acceleration Loans Initiative for Ukraine (ERA) are
nearing finalization, providing multi-year financing commitments, which the authorities
will utilize consistent with program parameters.