Ukraine: Fourth Review of the Extended Arrangement under the Extended Fund Facility, Request for Modifications of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

Russia’s war in Ukraine continues to have a devastating economic and social impact. Skillful policymaking supported by external financing has helped maintain macroeconomic and financial stability despite challenging circumstances, and the authorities continue to advance important structural reforms. Better-than-expected growth outturns in 2023 and in 2024Q1 demonstrate the resilience of the economy. Approval by the United States of the US$61 billion financial and military support package, and by the European Council of the €50 billion Ukraine Facility and its underlying Ukraine Plan are positive developments following a challenging period of liquidity strains in early 2024. However, headwinds include the rising risks of a prolonged war and the economic impact of the attacks on energy infrastructure and mobilization.