Ukraine Accelerates Financial Reforms to Meet EU Standards by 2028

01.09.2026, 18:48 visitukraine.today

Ukraine is reshaping banking and insurance to meet EU standards by 2028. See what the reforms mean for stability, consumers and visitors

Ukraine is moving ahead with major changes to its banking and insurance sectors, with the goal of bringing them closer to European Union standards by 2028.

The timetable is ambitious. More importantly, the reforms are continuing while the country is still dealing with the consequences of the full-scale war. For Ukraine, European integration has not been put on hold because of the war.

According to Reuters, The banking sector has had to deal with an extraordinary set of problems since Russia's full-scale invasion in February 2022. The economic environment changed almost overnight, while power cuts, cyberattacks and other wartime disruptions became part of everyday operations. Ukrainian banks nevertheless kept working. National Bank of Ukraine Governor Andriy Pyshnyi says the sector is now profitable, stable and liquid. The level of non-performing loans is also close to historic lows.

There has been a noticeable change in the regulatory side as well. Ukrainian banking rules are now about 78% compliant with EU standards. Before the invasion, that figure was roughly 50%. Banks have adapted to the new conditions and continued working on the reforms needed for closer integration with the European financial system. They are well capitalised, and the central bank continues to introduce the required regulatory changes. Customer demand has also remained strong across the market, from cards and deposits to loans and business banking services.

Insurance is going through an especially large transformation. In fact, the changes underway are among the biggest the Ukrainian insurance market has seen since independence. The sector is currently around 55% aligned with EU requirements, so it has more ground to cover than banking. The National Bank is working on a broad overhaul aimed at making insurers more transparent and financially stable.

A major step in that process was the updated "On Insurance" law (Law No. 1909-IX), which came into force at the beginning of 2024. It replaced the previous insurance law dating back to 1996. One of the most visible changes is the new classification system. There are now 23 insurance classes instead of more than 50 types of insurance. For insurers, this also means a simpler licensing structure.

The requirements for insurers have become stricter in several areas. Solvency is one of them, as are minimum capital requirements and customer protection. Insurers must calculate and assess their capital requirements every year. Under the basic approach, the minimum share capital is UAH 48 million for life insurance companies and UAH 32 million for other insurers.

EU-level regulation is not just a matter of ticking boxes for Ukraine. It is also closely linked to the country's recovery plans. Rebuilding after the Russian invasion will require huge amounts of money, and international public assistance alone will not be enough. The Ukrainian government and the World Bank estimate that recovery and reconstruction could cost nearly $588 billion over the next decade.

Governor Pyshnyi has said that international financial support is expected to reach $53 billion this year, followed by $42 billion next year and $22 billion in 2028. That support may decline as security risks change. If that happens, private capital will have to take on a larger role. And private investors need functioning financial infrastructure before they are willing to commit substantial funds.

The National Bank is therefore working on a legislative programme covering more than 50 new laws and other legal acts. The measures are intended to strengthen the financial system and bring it further in line with EU requirements. Work is also underway on capital adequacy and the ability of financial institutions to continue operating when faced with major disruptions.

Read also: Understanding What War Risk Insurance Is

For people in Ukraine, insurance has taken on a more practical importance. The same applies to foreign visitors who come to the country for different reasons. In the current environment, having a policy that actually corresponds to the risks involved matters more than simply having an insurance document.

The needs of a business traveler, a volunteer and someone visiting relatives will not necessarily be the same. Still, adequate insurance can help limit the financial consequences of an unexpected event. The new regulatory rules require insurers to maintain sufficient capital and meet solvency standards, which is intended to give policyholders greater protection.

People living in Ukraine and those visiting the country can choose from insurance products operating under the updated regulatory framework. Depending on the policy, coverage may include medical treatment, property damage and other unexpected expenses. In wartime conditions, this kind of financial backup can be particularly useful.

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The security situation is one reason war risk insurance has become increasingly relevant for people travelling to or staying in Ukraine. At the same time, reforms in the insurance sector are changing how such products are regulated. Customers should have access to clearer information and more understandable policy conditions.

Visit Ukraine has several war risk insurance plans, with different limits and purposes. Armor 30,000 EUR is intended to cover serious injuries connected with war risks. The policy includes coverage for concussions, penetrating injuries, fractures, as well as loss of sight or hearing. Armor 100,000 UAH offers the same types of protection but with a lower overall coverage limit, making it a more budget-friendly option.

There is also a plan for people who make several trips to Ukraine during the year. Armor+ Year of Protection provides annual coverage of up to 100,000 UAH, meaning travellers do not have to arrange a new policy every time they enter the country. Those applying for a visa can consider Visa & Residence Protection, which provides up to 30,000 EUR in coverage and meets consular requirements.

The plans have no franchise, or deductible. They also include 24/7 assistance from Ensuria Operations Ukraine. Customers can read the complete policy text before buying and receive the insurance document online. The products are designed to meet Ukrainian requirements while keeping the cost within reach for people with different budgets.

If you are travelling to Ukraine, please take care of your financial protection by selecting one of our plans with war risk coverage that fits the country's requirements and gives you sufficient coverage at an affordable price!

Ukraine's economy shrank by almost 30% during the first year of the full-scale invasion. It subsequently recovered, with growth of around 10% in the following years. Private capital is expected to become an important part of the next stage of recovery and reconstruction, according to Governor Pyshnyi.

The International Monetary Fund is among Ukraine's main international financial partners. It has completed the first review of the country's $8.1 billion lending programme, clearing the way for the next tranche of about $690 million. The IMF board is expected to make the final decision on the payment.

The National Bank has also continued to ease some of the foreign exchange restrictions introduced during the war. The approach is gradually moving away from rigid emergency controls and towards rules based more closely on individual risks. This is intended to give businesses and the wider economy more room to operate. Pyshnyi has compared the measures to pieces of a jigsaw that should eventually help restore the free movement of capital. That freedom is also part of Ukraine's commitments connected with EU accession.

Read also: How to Choose a War-Risk Insurer: NASU Recommendations

Financial reform is happening alongside Ukraine's broader EU accession process. Formal negotiations have begun, with the European Union opening the first of six negotiating areas. These discussions cover such issues as the judiciary, the rule of law, public procurement and financial control. Ukraine expects the remaining areas to be opened as the negotiations move forward.

President Volodymyr Zelenskiy has made faster EU membership one of the country's priorities. He has also linked accession with the wider security guarantees Ukraine needs after the war. The EU granted Ukraine candidate status in June 2022, four months after Russia's full-scale invasion. Since then, the EU has remained a major source of financial and military support for Ukraine.

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For customers, insurance reform is not only about bringing Ukrainian legislation closer to European rules. Some of the changes affect what insurers and intermediaries must actually do when dealing with policyholders.

The new law strengthens solvency and supervisory requirements for insurance companies. It also places greater emphasis on the information customers receive and on the responsibilities of insurance intermediaries. In practice, the idea is fairly straightforward: people should have more information before they agree to an insurance contract, and companies should be subject to stronger financial oversight.

Insurance intermediaries must meet requirements relating to professional qualifications, reputation and experience. They are expected to give customers detailed information before a contract is signed and to keep separate bank accounts for insurance payments. Intermediaries that handle premiums must also have compulsory professional liability indemnity insurance.

The National Bank now has a broader set of supervisory measures for dealing with violations and different levels of solvency risk. W