Ukraine could become a European lion in terms of economic growth, but it must continue with the necessary reforms, emphasized International Monetary Fund Managing Director (IMF) Kristalina Georgieva during a discussion on the project “Ukraine: At the Forefront of the Future,” organized by the Victor Pinchuk Foundation in Davos on the sidelines of the World Economic Forum.
“Electricity and heating are still subsidized… We know why the country does this, but it needs to be eliminated. There is still work to be done in terms of the fiscal situation. We are currently looking at how to make the distribution of the tax burden more equitable. It’s not easy, but it needs to be done,” she said.
“I look back on my country’s history and can tell you that it was very painful. After the euphoria of the disappearance of communism came the harsh reality that economic recovery requires sacrifices. Therefore, this is the number one issue — unfinished business,” the IMF chief emphasized, recalling Bulgaria’s experience.
Georgieva noted that it is also necessary to remove all obstacles to the dynamism of the private sector, and drew particular attention to security and the availability of labor.
According to her, during a meeting with business leaders in Kyiv last week, some of them raised the issue of access to labor, which needs to be resolved, above the issue of security. The IMF chief said that the Fund is ready to assist with practical issues such as the return of Ukrainians home, solving the problem of structural unemployment, and integrating veterans.
She added that it is also incredibly important for Ukraine to complete its accession to the European Union within a reasonable time frame, because this is a magnet for the Ukrainian economy to fully integrate into Europe.
“Third, you must believe in yourself like a lion. So get up in the morning and roar. Confidence matters. And I tell you from my own experience, from Bulgaria’s experience, that it will not be easy. But if you have that confidence and you demonstrate it day after day, if you put aside internal disputes, if you bury corruption for good, of course you will succeed,” Georgieva summed up the tasks.
As for achievements, she noted that during the war, Ukraine managed to achieve better results in reforms than before the war, including eight reviews of the four-year extended financing program launched in the spring of 2023.
As reported, under the EFF program, the Ukrainian government has committed to adopting a roadmap for the gradual liberalization of the gas and electricity markets within six months after the end of martial law, with a time-bound implementation plan for the period after its repeal.
“Such a roadmap is also part of the EU-Ukraine Plan and will cover reforms of special obligations (PSO), plans for a gradual increase in tariffs/tariff methodology, mechanisms for resolving the debt problem, as well as a comprehensive scheme to protect the most vulnerable households,” the program stated.
In turn, the IMF noted in mid-2025 that gas and electricity tariffs for the population cover about half of the market price.
At the end of last year, Ukraine and the IMF reached a staff-level agreement (SLA) on a new four-year program, which could theoretically be reviewed by the Fund’s Board of Directors in February this year, according to Communications Director Julia Kozak.
