**Ukraine Reforms Tracker: Issue 20**
As we continue to navigate the complexities of Ukrainian politics and economics, it’s essential to stay informed about the latest developments. In this issue of the Ukraine Reforms Tracker, I’ll provide you with an overview of key events from March 24 to April 6, 2025.
**Benchmarks and Soft Commitments with the IMF**
The second stage of the competition to appoint a new director of the Bureau of Economic Security took place on April 7. Sixteen candidates successfully completed the legislation knowledge exam, moving forward in the selection process. However, four candidates have filed appeals contesting their initial test results. This development highlights the challenges faced by Ukraine in selecting a suitable candidate for this critical position.
Moreover, President Volodymyr Zelensky signed draft law #12368-1 on April 7, completing a delayed International Monetary Fund (IMF) structural benchmark originally due by December 31, 2024. This law aims to restructure the administrative judiciary by establishing two specialized courts: a Specialized District Administrative Court and a Specialized Administrative Court of Appeal. The High Qualification Commission of Judges must announce a judicial selection competition within one month of the law taking effect.
**Formation of Customs Chief Selection Commission Delayed**
Despite a legal deadline of January 1, 2025, Ukraine’s government has yet to form the selection commission tasked with appointing a new head of the State Customs Service. This delay is attributed to political reasons and raises concerns about meeting IMF obligations. Under the Ukraine Facility program, a new customs chief must be selected and appointed by the end of June 2025.
**Obligations to the EU**
The Ukrainian Parliament plans to review several legislative proposals tied to the country‘s obligations under the Ukraine Facility program next week. These draft laws include reforming the Asset Recovery and Management Agency (ARMA), digitalizing enforcement proceedings, and introducing new oversight mechanisms for local government decisions. The timely adoption of these reforms is crucial in maintaining good relations with the EU.
**Other Key Economic Issues**
Experts have analyzed Ukraine’s tax collection trends in early 2025, providing an early assessment of revenue collection dynamics. Key findings include:
* Tax revenues continue to exceed Finance Ministry targets by Hr 22 billion ($530 million) in the first two months of the year.
* VAT collection efficiency was reported at 3.43% in January, though experts noted disproportionate declines in VAT accruals across 68 sectors.
* Excise tax revenues remained broadly consistent with previous trends.
**Commentary and Deeper Analysis**
The delayed formation of the customs chief selection commission raises concerns about Ukraine’s ability to meet its IMF obligations. The timely adoption of reforms under the Ukraine Facility program is essential for maintaining good relations with the EU and securing further financial support.
Moreover, the analysis of tax collection trends highlights areas where improvements are needed. The disproportionate declines in VAT accruals across various sectors suggest a need for targeted interventions to boost revenue collection.
As we continue to navigate these complexities, it’s essential to stay informed about the latest developments. I’ll provide you with further updates on key events and reforms in future issues of the Ukraine Reforms Tracker.
**Read More**
To learn more about these developments, please visit our website at kyivindependent.com for the full article.