In 2024, Ukraine received $41.7 billion in external financing to cover the budget deficit, which made it possible to allocate the necessary funds to repel full-scale Russian aggression, Finance Minister Sergii Marchenko said.
“This makes it possible to fully finance pensions, salaries in education and healthcare, and the entire humanitarian and social system,” the Finance Minister said during a national telethon on Monday.
He noted that this year and next year, Ukraine will allocate UAH 2.2 trillion ($52.5 billion at the current exchange rate), or 26% of GDP, to the security and defense sector.
Regarding budget financing for 2025, which is planned in the state budget at $38.4 billion, Marchenko emphasized the importance of implementing the G7’s ERA initiative to allocate $50 billion to Ukraine from frozen Russian assets.
“We have access to $50 billion, which allows us to look forward to 2025 with confidence. Moreover, if everything goes well, we plan to close 2026 and 2027 with the help of these assets,” the Finance Minister said.
He clarified that in 2024, the state budget has already received the first $1 billion of this $50 billion from the United States.
In general, assessing Ukraine’s dependence on external financing, Marchenko believes that “if we end the war, such dependence will not be glaring.” The minister reiterated that the huge budget deficit is due to the cost of the war.
