Budget support for 2026–2027, energy system recovery. Results of the MoF’s team working visit to the IMF and World Bank Annual Meetings

Between October 13–18, the team of the Ministry of Finance of Ukraine, headed by Minister of Finance Sergii Marchenko, took part in the Annual Meetings of the International Monetary Fund (IMF) and the World Bank.

Over six days, the Ministry’s delegation held more than 60 meetings with international financial leaders - including finance ministers of the G7 and the European Union, and top officials from the IMF, World Bank, European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), and Council of Europe Development Bank.

Minister of Finance Sergii Marchenko and Prime Minister Yulia Svyrydenko also addressed the G7 Finance Ministers’ meeting.

The main focus areas included:

• Budget support for Ukraine in 2026–2027;

• Launch of the Reparations Loan mechanism funded by frozen russian assets;

• Parameters of the new cooperation program with the IMF;

• Support for Ukraine’s energy system;

• Strengthening of sanctions pressure on russia and ensuring compliance.

Ukraine’s uncovered external financing needs for 2026–2027 amount to about USD 60 billion. Joint efforts with partners continue to secure funding for the coming years.

During meetings with EU and G7 finance ministers, as well as representatives of the European Commission, details of the Reparations Loan mechanism were discussed. Sergii Marchenko emphasized that the funds should become available to Ukraine as soon as possible, stressing the importance of reaching a political agreement in the near term.

The Ministry’s leadership also discussed with the IMF the parameters of a new cooperation program. An IMF mission is expected to visit Kyiv soon to discuss details. The goal is to ensure Ukraine’s budgetary needs are met in the medium term.

Implementation of existing joint projects and creation of new ones were discussed with leaders of the World Bank, EBRD, EIB, and CEB. The portfolio of joint projects with these institutions is the largest in the history of cooperation. A key focus was energy support, given russia’s increasing attacks on critical infrastructure.

The Ministry of Finance and the EBRD are exploring ways to attract additional funding for the energy sector ahead of the 2025–2026 heating season. During a meeting with the EIB, the Ukrainian side stressed the need to expand support. Recently, the EIB signed two EU-guaranteed agreements: one with Naftogaz of Ukraine for EUR 300 million to finance gas purchases, and another with Ukrhydroenergo for EUR 120 million to procure energy equipment for restoring hydropower plants.

An important achievement during the Annual Meetings was the signing of a Convention between the Government of Ukraine and the Government of Australia on the elimination of double taxation with respect to income taxes and the prevention of tax evasion and avoidance.

The document, signed by the Minister of Finance of Ukraine and the Treasurer of Australia, establishes clear and fair rules to ensure that the income of residents of both countries is not taxed twice. Once in force, the Convention will help attract Australian investment to Ukraine, reduce financial barriers, and make tax procedures simpler and more predictable.

The IMF and World Bank Annual Meetings provided an opportunity to present Ukraine’s current financial needs and agree on next steps for cooperation through direct dialogue with leading international partners.