Olga Zykova: A country at war, which implements reforms, inspires greater trust among partners
Deputy Minister of Finance of Ukraine Olga Zykova took part in a panel discussion on the topic “Ukraine Recovery Conference: will there be projects and money?”, organized by the Center for Economic Strategy (CES).
The Deputy Minister of Finance talked about the prerequisites for attracting funding for the recovery of Ukraine from international partners, commitments to provide funds from international financial institutions and donor countries, as well as the need for further reforms in Ukraine.
“Maintaining macro-financial stability is the basis of recovery and a prerequisite for attracting appropriate international funding. The more confidence the Government of Ukraine has in its ability to finance the State Budget deficit, the more the focus of attention will be on working with donors to recover Ukraine and on the implementation of relevant projects,” said Olga Zykova.
The Deputy Minister of Finance of Ukraine noted that for the year 2023 assurances have been received from international partners and financial organizations regarding the provision of financial assistance to Ukraine in the amount of USD 42.5 billion. As of now, the State Budget has received international financial assistance in the amount of more than USD 23.6 billion since the beginning of 2023. Grants make up about 31%.
“This year, the largest donors to Ukraine are the United States, the European Union, the International Monetary Fund and Japan. However, receipt of funds is not unconditional. Programs from international donors are vital for Ukraine, as well as the fulfillment of their conditions, in particular, the implementation of reforms in Ukraine,” noted the Deputy Minister of Finance of Ukraine during her speech.
Olga Zykova emphasized the readiness and desire of international partners to continue supporting Ukraine, which are based on a high assessment of the capabilities and actions of the Government of Ukraine in the field of reform, even during a full-scale war.
The Deputy Minister of Finance noted that the reorientation of partners from short-term to medium- and long-term support enables the Government of Ukraine to have a wider planning horizon - both for recovery and for the implementation of necessary reforms:
“In this context, the key initiative announced during the URC-2023 was the EU plan to launch a new multi-year assistance program for Ukraine for 2024-2027 (Ukraine Facility) in the amount of EUR 50 billion to cover the budget deficit, recovery and investment. The sources of the Ukraine Facility include EU grant funds, loans, as well as proceeds from russia's frozen assets,” said the Deputy Minister of Finance during the speech.
Olga Zykova also emphasized that the Ukraine Facility will contain three fundamental components: financial support in the form of non-refundable and credit support for Ukraine; an investment framework designed to attract private and public investments in the reconstruction of Ukraine; technical assistance and support measures, including the mobilization of expert assistance on reform issues.
“The Government of Ukraine, together with the European Commission, will develop a Recovery Plan, which will cover Ukraine's vision for recovery, reconstruction and reforms. Essentially, this strategic document will become a comprehensive framework for reforms and investments,” said Olga Zykova during the panel discussion.
The Deputy Minister of Finance noted that bilateral commitments were also announced during the Ukraine Recovery Conference, in particular, with the United States, Germany, France, Canada, the European Investment Bank and the European Bank for Reconstruction and Development.
Additional Information
On June 21-22, the Ukraine Recovery Conference (URC-2023) was held in London. Official representatives of 61 countries of the world, 33 international organizations, more than 400 representatives of the private sector and 130 participants from public organizations took part in the event. The URC-2023 conference was based on the commitments agreed in 2022 in Lugano and focused on the implementation of the rapid recovery of Ukraine, as well as the development of mechanisms to support the private sector, in particular by creating favorable conditions for attracting private investments.