Ukraine-Russia News
LAST UPDATE: July 25, 2025
Ukraine Central Bank Holds Rate as Government Seeks More IMF Aid
Ukraine’s central bank left its key rate at 15.5% for the third straight meeting, warning that war risks will limit 2025 growth (~2.1%). The government is seeking further IMF funding to support reconstruction.
Insight
The rate pause reflects cautious macro policy amid wartime uncertainty. Sustained fiscal support from the IMF remains critical to stabilizing Ukraine’s economy.
IMF recalls critical importance of anti‑corruption infrastructure, announces discussion on Ukraine’s financial needs
The IMF emphasized that Ukraine’s anti‑corruption institutions must remain independent as part of the Fund’s cooperation framework. It also announced plans to discuss Ukraine’s broader financial support needs, including reconstruction and potential debt restructuring.
Insight
The Fund is signaling that institutional integrity is non‑negotiable. Governance reform remains central to unlocking future aid, and better anti‑graft infrastructure will underpin fiscal credibility ahead of further IMF and donor support.
Volodymyr Zelenskyy signals retreat from power grab after mass protests
FT
President Zelensky softened his position following massive public dissent and international criticism over recent constitutional changes that seemed to expand executive power.
Insight
Public and diplomatic opposition constrained executive overreach. The retreat reinforces Ukraine’s democratic resilience even amid wartime pressures, reassuring allies concerned about authoritarian drift.
Zelenskiy introduces bill to ‘uphold independence’ of Ukraine’s anti‑graft bodies
Reuters
Zelenskiy submitted draft legislation to restore procedural independence to NABU and SAPO, reversing recent reforms seen as granting excessive control to the prosecutor general.
Insight
This marks a policy reversal under public and EU pressure, realigning Ukraine with EU expectations. It also indicates a pragmatic attempt to safeguard donor confidence and maintain reform momentum.
EU welcomes Zelensky ‘action’ on anti‑graft concerns
The EU welcomed Zelensky’s new legislation to preserve the independence of Ukraine’s anti‑corruption bodies, emphasizing that this reform is vital for continued EU aid and membership prospects.
Insight
EU validation reinforces that anti-corruption reform isn’t voluntary—it is a binding condition for integration and financial assistance. This move helps rebuild trust with Western partners.
Russia says Merz’s ‘militarisation’ of Germany is a cause for concern
Russia criticized Chancellor Friedrich Merz’s defense policy as reflecting dangerous “militarisation”, referencing plans to raise defense spending to 3.5% of GDP by 2029 and support for Ukraine.
Insight
The criticism underscores growing Russian anxiety over NATO-aligned escalation in Europe. It also signals Moscow’s intent to frame German defense as destabilizing, potentially influencing regional public opinion.
Russia set to impose harsher gasoline export restrictions soon, sources say
Russia plans to introduce tighter gasoline export restrictions, including on producers, citing domestic market pressures and rising fuel prices.
Insight
Tighter export curbs are being used as a macroeconomic lever to stabilize domestic energy supply, but they may strain international fuel markets and signal geopolitical control tactics.
