Abstract. As a result of breaking economic ties with Russia the Ukrainian economy has degraded, turning from an industrially developed to a raw material-based one.  Kiev exports mainly raw materials and semi-finished products, and imports more expensive goods with a high added value. A negative trade balance leads to an increase of the budget deficit which is covered by growing external borrowings. The global slowdown, aggravated by the coronavirus pandemic, has hit Ukraine hard, which is heavily dependent on the situation in foreign markets. State budget revenues have been significantly reduced while expenses are growing. The situation is aggravated by the onset of a period of peak payments on the country's sovereign debt. In fact, the Ukrainian economy is being on the verge of default. Kiev sees a way out of the crisis situation solely through new borrowings, primarily from the IMF. However granting of new credit tranches to Ukraine is stipulated by the IMF management by fulfillment of a number of stringent requirements, the implementation of which increasingly calls into question the sovereignty of the Ukrainian state.