Four countries joined the Donor Coordination Platform for Ukraine with a total of USD 5.5 billion in committed assistance

On February 14, the eighth meeting of the Steering Committee of the Multi-agency Donor Coordination Platform for Ukraine was held. The focus of the meeting was on ensuring Ukraine's macro-financial stability in 2024 and the reforms implementing.

The event was attended by the Prime Minister of Ukraine Denys Shmyhal, the Co-Chair of the Platform from Ukraine, Minister of Finance Sergii Marchenko, Deputy Prime Minister for Restoration, Minister for Communities, Territories and Infrastructure Development Oleksandr Kubrakov, Director-General for Neighborhood and Enlargement Negotiations Gert-Jan Koopman from the European Commission, White House Deputy National Security Advisor for International Economics Michael Pyle for the United States, as well as representatives of the G7 countries, the European Commission and international financial institutions.

The parties welcomed the decision to expand the Platform. The Republic of Korea, the Netherlands, Norway, and Sweden became the new member countries. The four countries have committed to allocate a total of more than USD 5.5 billion for Ukraine's economic recovery and reconstruction. Also for the first time today, Denmark, Spain, Estonia, Latvia, Lithuania, and Poland joined the Platform as observers.

During the meeting, Sergii Marchenko spoke about Ukraine's financial results in 2023 and priority needs for 2024. 

"In 2023, Ukraine demonstrated positive results in the economic and financial areas. Tax and customs revenues returned to the pre-war level, external financing reached USD 42.5 billion, interest among Ukrainian citizens and businesses in government bonds increased almost 2-fold, which allowed us to raise USD 15.5 billion through the issuance of government bonds. The economy returned to growth, and inflation declined from 26.6% to 5.1%. This year, challenges for the financial system remain. The Ministry of Finance is taking measures to reduce the State Budget deficit, but the need for international support remains significant - USD 37.3 billion," said Sergii Marchenko. 

In 2024, Ukraine has already received USD 436 million in external financing from Japan under World Bank projects.

The Minister of Finance of Ukraine expressed gratitude to the EU and the US for recent decisions on budgetary aid, namely the support of the EU leaders for the Ukraine Facility instrument with almost EUR 39 billion of budgetary aid for four years and the approval by the US Senate of a bill that includes USD 7.85 billion of direct budget support. 

Despite the full-scale war, Ukraine continues to implement reforms and performs all its obligations in the framework of cooperation with partners. This was stated by Sergii Marchenko during the presentation of the Reforms Matrix prepared by the Government of Ukraine in cooperation with the IMF, the EU, the US, G7 and the World Bank:

"A comprehensive approach to reform is important for economic growth and Ukraine's integration into the European Union. We recognize the scale of the challenges facing Ukraine. By the end of 2024, the Reform Matrix includes 230 conditionalities and recommendations for Ukraine, envisaged in the key cooperation documents. 55% of all conditionalities and recommendations are unique".

The Minister of Finance added that Ukraine is committed to the reform agenda, but there is an urgent need to further prioritize and structure reforms within the framework of the Platform. The implementation of measures should be carried out as efficiently as possible to develop the country's potential. 

The participants of the Platform emphasized their unwavering support for Ukraine and once again condemned russia's aggressive war against Ukraine.