This is what Nataliya Yaresko, Ukrainian Finance Minister, said addressing a meeting of the US-Ukrainian Business Council held in Kiev on November 9.

According to her, the EFFA requires major agriculture producers to pay taxes under the general taxation system and failure to do so would result in revenue losses of UAH 12 billion to the 2016 budget.

Yaresko believes that the major alternative may be implementation of a tax legislation reform developed by the Finance Ministry.

Losses to the budget will amount to UAH 60 billion and require identical expenditure cuts, Yaresko believes.

Yaresko acknowledged that the government has no way of compensating for the cuts but will try and ensure they do not impact the defense industry and social standards.

According to Yaresko, the IMF expects the government to come up with the ultimate solution regarding the tax legislation reform and 2016 budget.