By Olena Harmash KYIV, April 3 (Reuters) - President Volodymyr Zelenskiy called on lawmakers to pass key legislation next week to avert a funding crisis, help Ukraine fight the war against Russia, and
Zelenskiy Presses Lawmakers as Ukraine's Financial Support Hangs in Balance
Ukraine Faces Financial Crisis Amid Delayed Reforms and Legislative Challenges
By Olena Harmash
KYIV, April 3 (Reuters) - President Volodymyr Zelenskiy called on lawmakers to pass key legislation next week to avert a funding crisis, help Ukraine fight the war against Russia, and enact key reforms required for European Union accession.
Due to lagging reforms and slow legislative progress in late 2025 and early 2026, Ukraine missed deadlines to unlock billions from its key lenders, economists said.
With the need for external financing standing at $52 billion this year - equivalent to around a quarter of annual economic output - the budget situation is desperate.
Zelenskiy's Legislative Push
"I have a list of key draft laws that are critical for securing funding," Zelenskiy said in remarks released on Friday.
They range from strengthening the court system to reforming energy sector procedures.
"I believe that members of parliament from all parties must understand the importance of these bills for Ukraine's budget," said Zelenskiy, who has a majority in parliament but relations have soured.
Parliamentary Response and Planned Actions
David Arakhamia, head of the ruling Servant of the People faction, said lawmakers planned to meet on Monday to discuss the legislation with the key ministers. Voting is planned for April 7 and 8.
Dependence on Western Aid and Current Obstacles
Ukraine depends on Western financial support as it fights a bigger and better-equipped enemy. Since the 2022 invasion, Kyiv has received about $174 billion in economic aid.
But this year, key funding has been stalled after Hungary's Prime Minister Viktor Orban, who maintains close ties with Moscow, blocked a 90 billion euro loan to Ukraine.
Comparative Economic Impact
By contrast, Russia will benefit from the surge in global oil prices due to the war in Iran.
Critical Delays in Meeting EU and World Bank Requirements
Missed Deadlines and Financial Risks
KYIV IS CRITICALLY LATE
Economists from several Ukrainian think tanks said the country was critically late with meeting obligations under the EU's Ukraine Facility programme, failing deadlines on 14 indicators and risking more than $3.9 billion in financing.
In a March 30 letter to the speaker, seen by Reuters, EU Enlargement Commissioner Marta Kos said progress on the legislation would send a signal about Kyiv's commitment to reforms.
World Bank Funding at Stake
The parliament also failed to pass four laws enabling $3.35 billion from the World Bank, said the RRR4U consortium of four economic think tanks.
"If the commitments are met, the shortfall will be fully covered," the consortium said.
"If not, the financial chain will break: the deficit exceeds $30 billion, and funds will only last until May. Or in the best-case scenario, if parliamentarians finally start voting on the Ukraine Facility legislation, they will last until mid-summer."
Political Tensions and Governance Challenges
With the war in its fifth year, fatigue and corruption scandals have mounted, and relations between Zelenskiy's government and parliament have soured.
Calls for Greater Representation and Communication
Some lawmakers complain about the lack of communication on key issues, while opposition parties want more representation in the government.
(Reporting by Olena Harmash; Editing by Andrew Cawthorne)
