State budget
The European Commission presented the 20th package of sanctions against Russia, including a ban on maritime transportation of Russian oil. The Commissioner of the President of Ukraine for Sanctions, Vladyslav Vlasiuk, spoke about the 24% drop in Russia's oil revenues and the 36% increase in budget expenditures.
Applications for an additional payment of UAH 20,000 for emergency and recovery team workers have started on the Diia portal. Payments for January-March 2026 will be accrued by the end of this month.
Ukraine seeks to soften an unpopular tax bill concerning VAT for individual entrepreneurs, which the IMF demands. This is a condition for unlocking more than $8 billion under the financing program.
The director of a Kyiv City State Administration communal enterprise was detained for extorting UAH 1. 2 million from a contractor for the supply of educational equipment to schools. He faces up to 12 years in prison with confiscation of property.
The Cabinet of Ministers approved the budget of the Pension Fund of Ukraine for 2026 with revenues and expenditures of UAH 1. 26 trillion. This is 23.2% more than last year and takes into account the indexation of pensions and insurance payments.
As of February 1, 2026, Ukraine's international reserves increased to $57. 7 billion, setting a new historical record. The increase was due to external financing, which offset the NBU's currency sales and debt payments.
According to the Foreign Intelligence Service of Ukraine, Chinese investments in Russia since 2022 do not exceed $17. 4 billion. Chinese investors avoid investing in sectors that could fall under secondary sanctions.
People's Deputy Yaroslav Zheleznyak announced that the parliament would postpone the consideration of financial bills for a month. This means that the IMF and EU issues will not be resolved before March.
The Prosecutor General announced the detention of the director of a Kyiv City State Administration utility company. He demanded UAH 1.2 million for signing a contract with a company that won a tender worth UAH 8.29 million.
Russian officials are warning Putin of a potential economic crisis that could engulf the country by summer. Falling revenues and pressure on the banking system point to a growing budget deficit.
The Ukrainian government has approved a decision on an experiment with project-based postgraduate studies, which combines the training of doctors of philosophy with the implementation of research projects. This will change the logic of financing, focusing on specific projects rather than on the status of a postgraduate student.
Starting from March 1, 2026, minimum pension payments for families of fallen and missing defenders in Ukraine will increase. Payments for a disabled family member will be at least UAH 12,810, and for families with two or more members, at least UAH 10,020 per person.
Immediately after signing a peace treaty, Ukraine plans to gradually transform its Armed Forces, numbering around 800,000, into a contract army with voluntary service and increased payments for the front line, with the support of European partners.
The Russian banking system lost stability in 2025, profits decreased by 8%, and return on equity fell to 18%. The share of non-performing loans increased to 11%, indicating a systemic crisis.
The Verkhovna Rada plans to extend the deadline for physical identification for pensioners until July 2026. This decision was made due to long queues and the suspension of payments for some citizens.
Ukraine will resume competitions for public positions to receive €50 billion from the EU. This is stipulated by the Ukraine Facility Plan, and draft law No. 13478-1 is intended to ensure transparent personnel selection.
In the first quarter, Ukraine will receive 140 million euros in loans and 21 million euros in grants from the EU for dual-use technologies. This funding is part of the systemic build-up of the country's defense capabilities.
Five individuals have been notified of suspicion of appropriating UAH 26. 9 million allocated to help people who survived the Russian occupation. Among the suspects are representatives of pseudo-charitable foundations, an entrepreneur, and a lawyer's assistant.
The EU Council has approved a legal framework for providing Ukraine with financial support of 90 billion euros, with the exception of the Czech Republic, Hungary, and Slovakia. The funds will be directed to budget support and defense needs, and the first payment is expected in early Q2.
Ukrainian Foreign Minister Andriy Sybiha stated that Russia is not winning the war, its economy is in recession, and combat losses are increasing. Ukraine, meanwhile, is intensifying its campaign of deep strikes against military targets on Russian territory.
An analysis by the German Federal Intelligence Service (BND) showed that Russia spent up to 66% more on military needs than officially stated. According to BND estimates, Russia's military spending last year amounted to about 250 billion euros, which is 10% of GDP.
EU ambassadors reached an agreement on a €90 billion loan for Ukraine. The European Parliament is likely to vote next week.
Russia's budget deficit could almost triple by the end of 2026 due to reduced oil purchases by India and increased discounts. This will cut revenues, while expenditures may exceed expectations.
Euroclear announced the transfer of €1. 4 billion to Ukraine's support budget in early 2026. These funds are proceeds from frozen Russian assets.
The State Statistics Service recorded a 3. 0% growth in Ukraine's real GDP in Q4 2025 compared to the same period in 2024. Compared to the previous quarter, GDP increased by 0.7%.
Russia's state oil and gas revenues halved in January, reaching their lowest level since July 2020. This decline is due to falling oil prices and a strengthening ruble.
US President Donald Trump signed a $1. 2 trillion package of bills that ended a three-day partial shutdown of federal agencies. The document allows the resumption of funding for most government agencies until the end of the current fiscal year.
The UK Ministry of Defence has refused to transfer Watchkeeper reconnaissance drones to Ukraine. Instead of outdated drones, London will focus on supplying more modern systems.
French prosecutors are demanding that Marine Le Pen be banned from holding elected office for five years. This could block her participation in the 2027 presidential elections due to misuse of European Parliament funds.
The pension reform proposed by government officials in Ukraine envisages a transition to a point-based system, separate budget financing for special pensions, and the launch of a funded tier, but its success depends on realistic calculations, the budget's ability to cover increased expenditures, and public trust amid demographic and wartime risks.