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.
The Ministry of Finance of Ukraine has received $118 million on a non-refundable basis from Japan under the World Bank’s Health Enhancement and Life Saving (HEAL Ukraine) and Housing Repair for People’s Empowerment (HOPE) projects.
“The raised funds under the HEAL and HOPE projects will help the government to provide its citizens with adequate assistance, in particular, to expand the range of medical services and access to them, as well as to ensure overcoming the consequences caused by Russia’s armed aggression, to restore the housing infrastructure of Ukraine,” Minister Serhiy Marchenko was quoted as saying in the release of the Ministry of Finance on Monday.
It is specified that the attracted grant funding consists of $70 million under the HEAL Ukraine project, aimed at supporting the state budget as a reimbursement of incurred expenses under the Medical Guarantee Program, and $48.2 million – under the HOPE project, the funds of which are used to reimburse state budget expenditures used for compensatory payments to homeowners for repairs in apartment buildings and private houses in need of minor and medium repairs.
As reported, Ukraine received a record $8.9bn in international financial aid in March after only $1.2bn cumulatively in the first two months.
Due to the low external support, international reserves fell by 3.8%, or $1.47 billion, to $37.05 billion in February, after falling by 4.9%, or $1.98 billion hryvnia, in January.
The National Bank had forecast that the latest external inflows would allow international reserves to recover substantially. In January, it lowered their forecast for the end of 2024 to $40.4 billion from $44.7 billion.
HEAL Ukraine, HEALTHCARE, JAPAN, life preservation, Ministry of Finance of Ukraine
On February 1, the Ministry of Finance of Ukraine announced a tender for voluntary insurance of motor vehicles (CASCO), according to the Prozorro e-procurement system.
The total expected cost is UAH 103,917 thousand.
The last day for accepting bids is February 9.
insurance of motor vehicles (CASCO), Ministry of Finance of Ukraine, Prozorro
