**1. Substance of the Memorandum**
This Memorandum constitutes the international legal framework for Ukraine to receive macro-financial assistance from the European Union in an amount of up to EUR 8.35 billion for the period until December 31, 2027. These funds are part of a broader support instrument of up to EUR 90 billion, the repayment of which is planned to be made at the expense of reparations from the Russian Federation. The financing is provided in three tranches, the disbursement of each being directly conditional upon Ukraine’s fulfillment of clear political, economic, and structural conditions. The main objective of the assistance is to support the macro-financial stability of our state and to cover the state budget deficit.
**2. Structure of the Act and Comparative Aspect**
Structurally, the Memorandum consists of 17 main clauses, which define the general conditions for granting the loan, the procedure for monitoring, evaluation, and interaction between the parties, as well as two integral annexes. Annex I contains a detailed list of structural reforms (“policy conditions”) divided among three tranches, while Annex II regulates the system of quarterly and monthly macroeconomic monitoring.
Compared to previous macro-financial assistance programs, this document introduces a unique mechanism for debt repayment at the expense of Russian reparations. Furthermore, it establishes a significantly stricter link between the disbursement of funds and specific, detailed steps in the fields of fiscal policy, customs reform, and public financial management, and contains an explicit caveat on the inadmissibility of reversing any previously adopted anti-corruption measures.
**3. Key Provisions for Practical Application**
For the practical application and monitoring of the fulfillment of Ukraine’s obligations, the specific conditions for the disbursement of tranches, enshrined in Annex I, are key.
**** (Since the provisions of the act directly relate to taxation and customs matters):
* **Tax Reforms (Component 1):** Ukraine undertakes to extend the military levy at the rate of 5% for another 3 years (ensuring at least UAH 140 billion in revenues per year), to abolish the tax exemption on international parcels (except for defense-related ones), to introduce taxation of digital platforms, as well as to reform preferential tax regimes (in particular, for sole proprietors (FOP) of the third group and to counter business fragmentation) to generate an additional UAH 70 billion per year. It also provides for the alignment of corporate taxation with EU directives on combating tax evasion.
* **Customs Reform (Component 3):** It provides for the development and adoption of a new Customs Code of Ukraine, fully aligned with the EU Customs Code (Regulation No. 952/2013), the appointment of a permanent Head of the State Customs Service, as well as the approval of technical requirements for the integration of national customs IT systems with European ones.
* **Public Expenditure and Financial Management (Component 2):** A new public investment management (PIM) system is being introduced, new audit committees are being established at key spending units (in particular, within the Ministry of Internal Affairs, the Ministry of Energy, and the Ministry of Digital Transformation), and the Accounting Chamber and the State Audit Service are being reformed (delineating the functions of audit and inspection).
* **General Political Preconditions:** Any disbursement shall be suspended by the European Commission in the event of Ukraine’s violation of the rule of law, democratic standards, human rights, or in the case of reversal of any previously adopted anti-corruption measures.
