Due to the protracted war, Ukraine will need more external funding next year than this year to cover the state budget deficit. Currently, the uncovered funding gap for next year amounts to €16 billion, according to Finance Minister Serhiy Marchenko.
“We need more money than this year. This year there was more (than last year). We have not yet seen the final stage of this war, so we need to prepare. I need to cover €16 billion for next year,“ he said at the 20th annual YES conference ”How to End the War,” organized by the Pinchuk Foundation in Kyiv on September 12-13.
Marchenko added that calculations are still ongoing and Ukraine hopes to find common ground with its partners on financing next year, as this is a key issue.
Regarding the initiative for a reparations loan to Ukraine secured by frozen Russian assets, which was announced this week by European Commission President Ursula von der Leyen, the minister noted that his European colleagues are very creative.
“They are capable of preparing various mechanisms that help us use frozen (Russian) assets without actual confiscation,” Marchenko believes.
He welcomed these efforts but clarified that the debate on the specific mechanism is still ongoing and he does not intend to spoil it.
As reported, on August 18, Ukrainian Finance Minister Serhiy Marchenko estimated the financial gap for 2026-2027, which is currently not covered by confirmed sources of funding, at $37 billion.
According to him, the external financing required for 2026 amounts to $45 billion, but it will be partially covered by the accumulated reserves from international financing received this year.
