ESTDEV-funded project to bolster cyber resilience of Ukraine's State Tax Service
On 25 August, the Estonian Centre for International Development (ESTDEV) and the State Tax Service of Ukraine signed a memorandum of cooperation aimed at strengthening the cybersecurity of Ukraine’s tax administration and better protecting the country’s tax-critical information systems and data. Project is being implemented within the Tallinn Mechanism framework.
The project focuses on introducing a privileged access management (PAM) system at the State Tax Service of Ukraine. The system will enable the centralised and improved control of access to critical information systems and resources, monitoring and logging of system access, as well as reducing the risk of unauthorised access and both internal and external cyber threats.
“State tax administration depends directly on secure and reliable information systems. For Ukraine, protecting these systems is particularly important at a time when the country’s digital infrastructure is constantly targeted by Russian cyberattacks. Estonia can offer practical experience in both building a digital state and strengthening cybersecurity. Our goal is not only to introduce a technical solution, but also to strengthen the capacity of Ukraine’s Tax Service so that critical systems are better protected in the future as well,” said Andrea Kivi, ESTDEV's executive director.
Lesya Karnaukh, the head of the State Tax Service, said that Ukraine has much to learn from Estonia’s tax system and digitalisation, and Ukraine is continuously seeking to understand the factors behind Estonia’s digitalisation success. “The development of e-services is not merely about digitalisation; it is also a very important part of Ukraine’s resilience,” said Karnaukh.
According to the memorandum, the signatories will cooperate on the design, procurement and implementation of the PAM solution, develop the necessary security measures and integrate the system with the existing infrastructure. The solution will also be tested, and training will be provided to State Tax Service employees. The project will run from July 2026 until September 2027.
This project builds on the current collaboration between Estonia and Ukraine’s Tax Service, an ESTDEV-funded project to support the digital transformation of Ukraine’s Tax Administration, which runs from early 2025 until mid-2027. It aims to support the digital transformation of Ukraine’s tax administration, increase voluntary tax compliance and strengthen the agency's capacity to combat tax fraud. As part of the project, the Estonian Tax and Customs Board and Ukraine’s Tax Service will share best practices in strategic management, tax compliance, service development, debt collection and data management. Seven workshops, mentoring and training sessions for approximately 50 employees of Ukraine’s Tax Service are planned for the coming months.
The Tallinn Mechanism was established by Ukraine’s partners in December 2023 to coordinate international assistance aimed at strengthening Ukraine’s national cybersecurity and cyber resilience. It brings together 14 countries: Canada, Czechia, Denmark, Estonia, Finland, France, Germany, Italy, the Netherlands, Norway, Poland, Sweden, the United Kingdom, and the United States. The European Union, NATO, and the World Bank participate as official observers.
Continued collaboration contributes to strengthening Ukraine’s digital resilience and supporting the country’s path towards European Union membership.
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