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Most positive EU Enlargement Report for Ukraine since 2023: European Commission highlights significant progress in areas overseen by the Ministry of Finance

Ukraine Government

Ministry of Finance of Ukraine, posted 04 November 2025 16:08

On November 4, the European Commission released its 2025 EU Enlargement Report. This year, Ukraine received its highest evaluations in the past three years within the framework of the Enlargement Package. The report confirms Ukraine's steady progress in implementing EU norms and standards.

The document is one of the key documents that define the direction of Ukraine's transformational processes on its path toward EU membership.

The EU acknowledges Ukraine's progress in preparing for accession negotiations and its readiness to open negotiation clusters. Over the past year, progress improved in 15 out of 36 negotiation chapters.

This result demonstrates that EU membership remains among the top priorities for the President of Ukraine, the Verkhovna Rada (Parliament), and the Government.

The Ministry of Finance of Ukraine is the responsible authority for four chapters that received some of the highest ratings:

• Customs Union
• Taxation
• Financial Control
• Financial and Budgetary Provisions

Additionally, the Ministry of Finance co-leads eight other chapters, including Company Law, Economic and Monetary Policy, Statistics, and areas related to the Rule of Law.

"The European Commission's report not only highlights the achievements but also outlines key areas for strengthening reforms in 2026. The Ministry of Finance of Ukraine remains committed to the European integration path and is consistently working to implement the EU's recommendations to move closer to full membership. European integration is a top priority for the President of Ukraine, the Government, and the Parliament," said the Minister of Finance of Ukraine Sergii Marchenko.

Customs Union

The customs chapter received one of the highest evaluations in the report - "good level of preparation" and "good progress."

During the reporting period, Ukraine adopted bylaws necessary to implement the Law of Ukraine "On Amendments to the Customs Code of Ukraine regarding the implementation of certain provisions of the EU Customs Code."

A competency-based approach was introduced in key human resources management processes - recruitment, evaluation, professional development, and training.

The development of the draft of the new Customs Code of Ukraine, which the Government submitted to the European Commission for review in September, brings Ukraine closer to completing negotiations under Chapter 29 "Customs Union" and serves as a key prerequisite on the path toward EU membership in the customs sphere.

Taxation

In the area of taxation, Ukraine achieved "good progress" and has a "moderate level of preparation."

Ukraine harmonized its approach to excise taxation of tobacco products, adopting amendments to the Tax Code to gradually increase excise rates to reach EU-mandated levels by 2028.

To ensure implementation of the EU Directive on Administrative Cooperation, Ukraine drafted and submitted to Parliament a bill "On Amendments to the Tax Code of Ukraine and Certain Other Legislative Acts regarding the Introduction of International Automatic Exchange of Information on Income Earned through Digital Platforms."

The operational capacity and digitalization of the State Tax Service of Ukraine have also been strengthened.

Financial Control

Ukraine has reached a "moderate level of preparation" in aligning its financial control framework with the EU and achieved "good progress" in internal control and external audit - compared to only "limited progress" last year.

The European Commission provides recommendations for next year and highlights notable progress in strengthening the organizational, functional, political, and financial independence of the Accounting Chamber.

Financial and Budgetary Provisions

In this area, Ukraine is at an "early stage of preparation" and has made "limited progress."

Achievements include the establishment of an Interagency Working Group for the implementation of the EU Own Resources System - a coordination platform for preparing Ukraine's future participation in the EU's financial system.

The Report not only records progress but also outlines key priorities for 2026, where Ukraine should focus its efforts to further advance on its EU integration path.

The Ministry of Finance of Ukraine remains committed to reform and continues to implement the European Commission's recommendations to ensure Ukraine's full-fledged membership in the European Union.