Ukraine faces risk of tougher EU loan terms to get aid payouts

The European Union is considering stricter conditions for disbursing €8.4 billion in financial aid to Ukraine, including requiring tax reforms on a preferential regime for small businesses, which has sparked domestic resistance. Ukraine is also negotiating with the IMF to delay similar fiscal measures tied to its $8 billion loan program, as it struggles to meet reform deadlines. The proposed changes, aimed at boosting state revenue and reducing the shadow economy, face political opposition in Ukraine’s parliament and societal pushback. While defense aid remains unaffected, delays in implementing reforms could stall non-defense financial support from both the EU and IMF.