**Ukraine’s Reforms Tracker: June 2025 Edition**
The Ukrainian government has been criticized for failing to meet its commitments to international partners, particularly in the areas of business and economics. This weekly digest highlights the key developments from May 26 to June 1, 2025.
**Customs Reform on Hold**
Think tanks and economic organizations are urging the government to launch customs reform, a process that has been stalled for five months. Despite legal obligations, the Cabinet of Ministers has yet to form a selection commission for the head of the State Customs Service. This delay jeopardizes Ukraine’s International Monetary Fund (IMF) benchmarks. Finance Minister Serhii Marchenko argued that the full-scale invasion by Russia had changed the reform’s context and that broader structural changes are needed.
**Budget Declaration Approval Missed Again**
The government missed its legal deadline for approving the country’s medium-term Budget Declaration, which was required to be adopted by June 1. This marks the second consecutive year in which the deadline has been missed. The Finance Ministry had reinstated this requirement earlier in the year.
**State Audit Reform Finally Moving Forward**
After a nearly month-long delay, the government finally transmitted names of international experts for the Accounting Chamber selection process to parliament. A six-member selection board will be formed to launch the competition for new members of the Accounting Chamber.
**Restricting Foreign Currency Bond Sales**
Starting June 30, Ukrainian investors will no longer be able to purchase government-issued FX-denominated domestic bonds outside of licensed exchanges. This decision aims to curb currency manipulation by exporters but may complicate operations for institutional investors and dampen budget revenue flows.
**Obligations to the EU**
Ukraine’s delayed Asset Recovery and Management Agency (ARMA) reform suffered another setback as the draft law #12374-d was once again removed from parliament’s agenda. The bill aims to overhaul ARMA, a critical condition for unlocking part of the 12.5 billion euros in EU funding allocated to Ukraine in 2025.
**Conclusion**
The Ukrainian government faces significant challenges in meeting its commitments to international partners and implementing much-needed reforms. The delays in customs reform, budget declaration approval, and state audit reform are cause for concern, particularly in light of Ukraine’s ongoing conflict with Russia. As the country seeks to rebuild and recover, it is essential that these reforms move forward to ensure stability and prosperity.
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