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.