Kyiv, Nov 18 (V7N) – Ukraine has begun talks with the International Monetary Fund (IMF) on a new $8 billion lending programme, even as a major corruption scandal threatens trust in the government and the country continues to confront Russian forces in its east.

The IMF mission launched discussions with Ukrainian officials on Monday to establish a new financing programme considered vital to sustaining the country’s budget during the ongoing war with Russia. Ukraine relies heavily on international lenders to fund its operations, as most revenues are directed towards military efforts in the fourth year of Moscow’s invasion.

Senior lawmaker Danylo Hetmantsev described the talks as the most challenging since the February 2022 invasion, following an anti-corruption investigation into a state nuclear agency. Authorities allege a scheme involving roughly $100 million in kickbacks from contractors and money laundering. The probe has already led to the resignation of two government ministers and prompted President Volodymyr Zelenskiy to announce a management overhaul in the energy sector.

The scandal is the largest in a series of recent corruption cases. In September 2023, former Defence Minister Oleksii Reznikov resigned after months of allegations against his ministry, though he was never formally charged.

The crisis comes as Ukrainian forces face difficulties defending the strategic city of Pokrovsk, whose capture by Russian troops could threaten the remaining government-held areas in eastern Ukraine.

Hetmantsev, head of the parliamentary tax and finance committee, warned that the scandal has caused a “loss of trust” among Kyiv’s international partners, who openly discuss the investigation. “Trust is capital that is created over years, and can be lost in one unworthy moment,” he said via Telegram, adding that officials will have to make “very difficult decisions” to restore credibility.

IMF representative Priscilla Toffano said the discussions will focus on Ukraine’s economic policy objectives, governance reforms, anti-corruption measures, and growth strategies. Talks began as a special parliamentary commission publicly questioned government and law enforcement officials about the investigation and other corruption risks.

Ukraine is seeking to finalize a new IMF programme by the end of the year. Roksolana Pidlasa, head of the parliamentary budget committee, confirmed that the proposed financing would provide approximately $8 billion over four years, aimed at supporting economic stability and continued war-related expenditures.

The outcome of the IMF talks is seen as critical to Ukraine’s ability to maintain both domestic governance and its resistance against Russian advances in the east.

END/WD/AJ/