**Ukraine’s Reform Progress: A Look at the Week of May 19-25, 2025**
As Ukraine continues to navigate its journey towards reform and stability, this week’s “Ukraine Reforms Tracker” provides an essential update on key developments in the country. Yaroslav Zhelezniak, a Ukrainian lawmaker and expert in finance and customs policy, offers insights into significant milestones achieved by the government.
**Customs Reform Hits Roadblock**
Despite mounting pressure from civil society and lawmakers, Ukraine’s Cabinet of Ministers has approved the development of a medium-term action plan for customs reform implementation. This move comes amidst criticism that the government has deliberately stalled customs reform for over five months, failing to form a selection commission required by law and the International Monetary Fund (IMF) financial support program.
The approval of the roadmap is seen as a step in the right direction, but its implementation will be crucial in rebooting the State Customs Service. The IMF’s financial support program has emphasized the need for customs reform to enhance trade facilitation and boost revenue collection.
**Specialized Administrative Courts Gain Momentum**
President Volodymyr Zelensky has submitted a draft law proposing the creation of two specialized administrative courts in Kyiv, with nationwide jurisdiction. These courts are expected to play a central role in handling public administration and anti-corruption cases, including high-profile disputes involving state institutions.
The proposal follows prior approval by the High Council of Justice, which endorsed the president’s initiative to formally establish the courts and begin operational planning. The draft law is set for a first reading during the next plenary meetings scheduled for June 3-5.
**EU Commitments on the Agenda**
Ukraine’s parliament, the Verkhovna Rada, is scheduled to hold its next plenary sessions from June 3–6, with a legislative agenda that includes several bills tied to the country’s commitments under the EU-backed Ukraine Facility program. Key among these are:
* Draft law #13165 and alternatives on improving judicial integrity declarations
* Draft law #12377 on establishing the fundamentals of national housing policy
* Draft law #9363 on the digitalization of enforcement proceedings (repeated second reading)
* Draft law #12374-d on restarting and strengthening the institutional capacity of the Asset Recovery and Management Agency (ARMA) (second reading)
Additionally, lawmakers are expected to consider in second reading draft law #13018-d on financial inclusion, which would allow for the establishment of banking services via Ukrposhta. This legislation is part of Ukraine’s soft commitments under its IMF memorandum.
**Economic Growth Projected**
A draft of Ukraine’s medium-term budget declaration, obtained by the Parliament’s Temporary Investigative Commission on Economic Security, outlines moderate economic growth and a gradual decline in inflation through 2028. Key projections include:
* Nominal GDP reaching Hr 10.44 trillion ($251.3 billion) in 2026, Hr 11.92 trillion ($287.0 billion) in 2027, and Hr 13.47 trillion ($324.4 billion) in 2028.
* Annual inflation (Consumer Price Index) declining from 9.7% in 2026 to 7.1% in 2027, and 5.6% in 2028.
* End-of-year exchange rate projected at: 43.7 Hr/dollar in 2025; 44.8 Hr/dollar in 2026; 45.3 Hr/dollar in 2027; and 45.8 Hr/dollar in 2028.
These projections are part of Ukraine’s annual fiscal planning cycle, with the Cabinet of Ministers required to adopt the declaration by June 1.
Yaroslav Zhelezniak, a renowned expert in finance and customs policy, serves as the first deputy head of Ukraine’s Parliamentary Committee on Finance, Tax, and Customs Policy. He also co-chairs the Ukrainian Chapter of the Parliamentary Network of the World Bank and International Monetary Fund.
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