More than half of external financing in 2024 is budget support from EU countries: Sergii Marchenko at the EU Council meeting

On June 21, Minister of Finance of Ukraine Sergii Marchenko gave a speech online at the meeting of the EU Economic and Financial Affairs Council (ECOFIN). 

The event was attended by the ministers of economy and finance of the EU member states as well as representatives of the EU institutions. 

The topics discussed included the financial and economic situation in Ukraine, policies and measures implemented by the Government of Ukraine to join the EU and perform the terms of the Ukraine Plan under the Ukraine Facility for 2024-2027.

Sergii Marchenko expressed gratitude the European colleagues for the support since the beginning of the full-scale invasion:

"The European Union has been the largest donor of direct budgetary assistance since February 2022. In the first five months of this year, financial support from the EU accounted for more than half of all funds raised. This assistance is a crucial element in keeping the financial system stable. I am grateful for the understanding of Ukraine's needs and for the prompt adoption of the necessary decisions. Expanding cooperation with the EU and full integration are the absolute priorities of the Government of Ukraine."

Regarding the implementation of the 2024 budget, Sergii Marchenko noted that international partners have assured further financial support for Ukraine. Together with the effective measures taken by the Government of Ukraine to increase domestic revenues, this allows us to ensure the full implementation of priority State Budget expenditures. Financial assistance from the EU is expected to be the largest in terms of volume and reach EUR 16 billion in 2024, provided that Ukraine performs the indicators of the Ukraine Plan. 

Ukraine and international donors are actively cooperating to meet Ukraine's priority needs in 2025. The Minister of Finance emphasized the medium-term nature of the EU's Ukraine Facility, which provides support for 2024-2027. The Ministry of Finance of Ukraine has the opportunity to properly plan the performance of the State Budget for the following years. In 2025, the Ukraine Facility provides EUR 15.2 billion of assistance to Ukraine, of which EUR 12.5 billion is budget support. 

Separately, Sergii Marchenko thanked the EU for supporting the G7's decision to allocate about USD 50 billion to Ukraine from future revenues stemming from the immobilization of Russian Sovereign Assets. This step will provide Ukraine with the necessary resources in 2025. 

Ukraine continues to work systematically to implement reforms, as emphasized at the EU Council. To maximize the effectiveness of this process, the Government has prepared and presented the Reforms Matrix. This is an analytical tool that covers all the conditionalities and recommendations of Ukraine's international partners. The Reforms Matrix about indicators for 2024, 36 of which are indicators of the Ukraine Plan. 

According to the Minister of Finance, the performance of the indicators of the Ukraine Plan will contribute to economic growth, green transition, digital transformation and European integration. By the end of the second quarter of 2024, nine indicators are envisaged, five of which have already been fulfilled.