Budget needs for 2026 and support for the energy system - the focus of Sergii Marchenko’s remarks at the financial meeting of the Nordic-Baltic Eight

Minister of Finance of Ukraine Sergii Marchenko addressed the meeting of finance leaders of the Nordic-Baltic Eight, held on the sidelines of the IMF and World Bank Annual Meetings in Washington, D.C., USA.

The meeting brought together finance and economy ministers as well as central bank governors of the Nordic-Baltic Eight countries. Participants discussed Ukraine’s financial needs for 2026 and cooperation in the energy sector.

“I am grateful for the steady support for Ukraine since the very first days of the full-scale war. The assistance provided by the Nordic-Baltic Eight countries is the largest relative to their GDP. Their strong political support is also critical for decision-making at the level of the European Union,” said Sergii Marchenko.

Minister of Finance briefed partners on the main security and financial challenges Ukraine is currently facing. The war with russia continues, and as a result, defense and security expenditures remain the largest component of the State Budget.

He noted that the Draft State Budget for 2026 allocates over USD 60 billion - or 60% of the total budget - to defense and security. All domestic financial resources - including taxes, customs payments, excise duties, fees, and domestic borrowing - will be directed toward covering defense expenditures.

At the same time, Ukraine relies on international support to cover social spending. A significant portion of this assistance has already been confirmed by international partners. To meet the remaining needs, additional support mechanisms are being explored, including the introduction of a new financial instrument - the Reparations Loan - and the launch of a new cooperation program with the IMF.

Sergii Marchenko also discussed with partners the possibility of strengthening support for Ukraine’s energy sector. Due to russian attacks, Ukraine has lost part of its gas production capacity, and the parties considered possible cooperation mechanisms to address this issue. Ukraine’s key need for a stable heating season is to increase natural gas import volumes.

The Nordic-Baltic Eight countries reaffirmed their unwavering readiness to stand by Ukraine in overcoming the consequences of the full-scale war.