Bloomberg: the EU may tighten the conditions of the €90 billion loan

The European Union plans to tighten the conditions for providing financial aid to Ukraine under a €90 billion loan.

This was reported by Bloomberg, citing sources.

According to the agency, a plan being discussed by the European Commission would make part of the payments conditional on meeting additional tax requirements. The measure concerns €8.4 billion in macro-financial assistance that Kyiv expects to receive in 2026.

In particular, the EU is proposing to require the Ukrainian authorities to introduce a 20% value-added tax (VAT) for companies operating under the simplified tax system if their annual revenue exceeds 4 million hryvnias. At present, such companies pay a minimal rate of 5% of income.

According to estimates by Ukraine’s Finance Ministry cited by Bloomberg, the change could bring more than 40 billion hryvnias (about $907 million) into the state budget each year.

The discussion is taking place in parallel with Ukraine’s negotiations with the International Monetary Fund (IMF) over a separate loan program worth more than $8 billion. The IMF has already disbursed $1.5 billion, while the next tranche of about $700 million remains in question. Ukraine missed the March deadline for amending its tax legislation and must meet the requirements by June, when the next review of the program is scheduled, the report says.

As Bloomberg’s sources note, the measures under consideration are aimed at increasing tax revenues and ensuring the sustainability of Ukraine’s public finances amid the ongoing conflict with Russia.

According to the agency, no final decision on the initiative has yet been made.