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.
Prime Minister Denys Shmyhal believes that the state budget for 2025 adopted by the Verkhovna Rada clearly defines priorities in the context of limited resources.
“Given the limited resources, this budget clearly defines priorities. Defense, security, support for people, development and restoration of the country. This is all that makes us stronger and leads to victory,” Shmyhal wrote on his telegram channel after the Verkhovna Rada adopted the budget in the second reading and in general.
According to the Prime Minister, all taxes of citizens and businesses next year will be directed to the defense and security of the country.
“The total resource allocated to the security and defense sector will amount to UAH 2.23 trillion. Record funds will be allocated for the production and purchase of weapons. UAH 739 billion is provided for this purpose. There will be more funding for the modernization of our defense industry, as well as for the purchase of drones,” he said.
Shmyhal noted that the second priority of the budget is to support citizens, in particular, almost UAH 421 billion is provided for social assistance programs.
“Expenditures on education will amount to about UAH 199 billion, and on healthcare – UAH 217 billion. Important modernization and development projects are planned in both regions. UAH 10.7 billion is allocated to upgrade medical facilities, purchase modern equipment, and create rehabilitation centers. An additional UAH 17.5 billion has been allocated for the modernization of educational institutions and the construction of shelters,” he added.
Among other things, Shmyhal noted that in 2025 the resources of local budgets will increase by 15%.
In January-September this year, Metinvest Mining and Metallurgical Group, including its associates and joint ventures, increased its payments to the budgets of all levels in Ukraine by 38% year-on-year to UAH 15.2 billion.
According to the company’s press release on Tuesday, Metinvest remains a pillar of the country’s economy amid the full-scale war.
Among the largest payments is the fee for subsoil use, which increased 2.8 times compared to the first and third quarters of 2023, to UAH 4.2 billion. The Group also increased its unified social tax payments by 16% to UAH 2.8 billion. In addition, Metinvest paid UAH 2.5 billion in personal income tax to the budget, up 11% compared to the first three quarters of 2023.
Land payments in January-September 2024 increased by 6% year-on-year to UAH 948 million, and environmental tax by 21% to UAH 543 million. At the same time, income tax payments decreased by 32% to UAH 1.9 billion.
“In a time of war, paying taxes is critical to supporting the Ukrainian economy. The main task of our company is to strengthen the country’s defense capabilities by all means available: to be a reliable employer, investor, manufacturer of steel products for the frontline and supplier of ammunition and equipment to the Armed Forces. Only by working together can we create a solid foundation for Ukraine’s victory and ensure a peaceful future for Ukrainians,” said Yuriy Ryzhenkov, CEO of Metinvest.
As reported earlier, Metinvest increased its tax payments to the state budget by one and a half times to UAH 10 billion in the first half of 2024. In 2023, the company paid UAH 14.6 billion to the state budget.
“Metinvest is a vertically integrated group of steel and mining companies. The group’s enterprises are mainly located in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions.
The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
In January-June 2024, Varus supermarket chain paid UAH 700 million in taxes and fees to the state budget, the retailer’s press service reports.
“Every hryvnia of taxes paid to the state budget is another brick in building a strong economy of Ukraine. We are grateful to all the customers of Varus supermarkets, thanks to whom we continue to work and contribute to the support of our country,” comments Marina Panina, CFO of Varus.
In the first three quarters of 2024, Varus opened new stores in Pokrov, Zaporizhzhia, two in Odesa and renovated the store in Kryvyi Rih.
The release notes that the expansion of the network and the opening of new stores allows Varus to create and provide jobs for Ukrainians in different regions. The company pays special attention to internally displaced persons. First of all, the company helped evacuate and provided new jobs to its employees from the regions where active hostilities are ongoing. The IDPs are employed in all cities where the chain has stores. In the city of Dnipro alone, more than 500 IDPs have been employed in the chain’s stores.
In 2023, Varus paid UAH 1.1 billion in taxes and fees to the state budget.
In January-September 2024, Naftogaz Group paid more than UAH 61 billion to the state budget of Ukraine and UAH 5 billion to local budgets, the company’s website reports.
In September, the company paid UAH 5.8 billion to the state budget, including UAH 0.6 billion to local budgets.
As reported, in 2023, Naftogaz Group companies paid UAH 90.2 billion in taxes, UAH 83.4 billion of which went to the state budget and UAH 6.8 billion to local budgets.
The state budget for 2025 envisages more than 5 billion UAH for the agricultural sector, Minister of Agrarian Policy and Food Vitaliy Koval said in Telegram. According to the report, 4.726 billion will be allocated for payments per hectare and for the maintenance of cows, sheep and goats.
In addition, UAH 200 million are planned for the restoration and construction of land reclamation systems, UAH 5 million for compensation of ERUs to family farms and UAH 80 million for the provision of favorable interest-free loans to farms.
The state budget envisages 1.37 billion UAH for grants, including for orchards and greenhouses, and 1 billion UAH for demining of agricultural land, the minister explained.
