Ukraine faces losing a 3.7 billion euro macro-financial assistance tranche from the European Union after failing to pass mandatory parcel tax legislation in Kyiv.
European Commission spokesperson Balazs Ujvari stated that officials in Brussels are closely monitoring the draft law, adding that its passage remains one of 12 conditions required to release the money in early autumn. His comments were reported by European Pravda.
The target funding for Ukraine under the EU macro-financial assistance program totals 8.35 billion euros in 2026. The European Union has already disbursed 3.2 billion euros to Kyiv under the initiative, with the proposed second tranche worth approximately 3.7 billion euros dependent on legislative compliance.
Ujvari emphasized that lawmakers must approve the measure to keep disbursements on schedule, noting that ending the tax relief is also critical for mobilizing additional revenue for Ukraine's state budget. The draft law would remove the current value-added tax exemption for international shipments valued at under 150 euros.
European Union aid conditions
The European Commission acts as the executive branch of the European Union, overseeing financial aid packages and policy compliance across member and partner states. Its macro-financial assistance programs provide emergency loans and funding grants to support national economies undergoing severe financial strain.
The funding warning follows a vote on September 1 in which the Verkhovna Rada once again failed to pass the bill removing the tax exemption on international packages valued up to 150 euros. International partners have identified the tax policy change as a core requirement for delivering scheduled financial support.
International Monetary Fund funding risks
Roksolana Pidlasa, a People's Deputy and chair of the budget committee in the Verkhovna Rada, reported that another major aid package is also in jeopardy. Pidlasa warned that a planned 1.66 billion dollar tranche from the International Monetary Fund is at risk due to insufficient progress on key legislative reforms.
The Verkhovna Rada is Ukraine's unicameral parliament responsible for enacting tax codes and state spending. The Washington-based International Monetary Fund works alongside European institutions to provide financial stability loans, making disbursements conditional on structural economic reforms and revenue generation.
