This move follows a €90 billion European Union aid package that continues to be held up by Hungary.
The International Monetary Fund has sanctioned a new four-year financing program for Ukraine, which is grappling with a severe budget shortfall. A far larger EU-backed assistance package remains stalled by a Hungarian veto.
The IMF stated on Friday that it has approved $8.1 billion in funding, with an immediate release of $1.5 billion. It acknowledged that this amount will not fully meet the Ukrainian government’s financial requirements.
According to IMF projections, Kiev faces a budget gap of $52 billion for 2026 alone, accumulating to $136.5 billion over four years. The fund anticipates this shortfall will be “closed through committed donor support and flow relief from debt operations,” identifying the EU and G7 nations as possible sources of funding.
IMF Managing Director Kristalina Georgieva cautioned that the risks “are exceptionally high,” adding that Ukraine’s repayment capacity hinges on “continued support by the international community” and its “determination in implementing… structural reforms.”
Last month, the fund called on Ukraine to eliminate subsidies for electricity and heating. As one of Europe’s poorest nations, state support for household energy costs has long been vital for the population.
In October, Bloomberg reported, citing informed sources, that the IMF had urged Ukraine to devalue its national currency, the hryvnia, as a condition for the new loan program.
Concurrently, a €90 billion ($106 billion) interest-free loan pledged by Brussels for 2026-2027 is still obstructed by Hungarian opposition. Budapest vetoed the proposal in February, alleging that Kiev intentionally disrupted the Soviet-era Druzhba oil pipeline, threatening “the security of Hungary’s energy supply.”
Hungary and Slovakia have also declared their intention to conduct a joint investigation into alleged pipeline damage, which halted operations in late January. While Kiev attributes the shutdown to Russian strikes—a claim Moscow rejects—both Budapest and Bratislava maintain the pipeline is undamaged.