Olga Zykova: Sustainable development and preparation for sovereign green financing – one of the key instruments for Ukraine’s EU integration and resource mobilisation for reconstruction

Sustainable development, adoption of European corporate reporting standards and the move toward sovereign green financing become key elements of modernizing the Ukrainian economy and preparing for full integration of Ukraine into the internal market of the European Union.

This was stated by Deputy Finance Minister of Ukraine Olga Zykova on Thursday, December 4, in Kyiv during the forum “Strengthening Ukraine’s resilience: Launch of the Sustainable Development Financing Platform.”

During the event the Sustainable Development Financing Platform – a national coordination mechanism that will support reconstruction, Ukraine’s integration into the EU, long-term sustainable development and creation of an investment-friendly environment – was officially launched.

The forum brought together government institutions, international partners, representatives of the financial sector and the expert community to work out a systemic approach to developing sustainable financing in Ukraine.

Olga Zykova outlined the priorities of the Ministry of Finance in the field of sustainable development, in particular the implementation of European ESG/ESRS corporate reporting standards and the prospect of issuing green bonds in the future.

“Implementing European corporate reporting standards on sustainable development is a strategic task for the Ministry of Finance. This is an important part of adapting Ukraine’s financial system to EU norms and preparing for integration into the Union’s internal market. For us, this is not a formality – this is a path toward greater transparency, strengthening investor confidence and improving the quality of management decisions – both in the private sector and in public administration,” – emphasized Olga Zykova.

In 2024 the Government approved a Strategy for implementing sustainability reporting and a corresponding operational plan. The document defines a gradual transition of Ukrainian companies to the European Sustainability Reporting Standards (ESRS), and harmonizes national legislation with EU norms in accounting and auditing.

According to the Deputy Minister of Finance, implementing these standards is a large institutional process that requires not only political support but also significant human resources, analytical and expert work. Currently it is important to ensure coordinated action by all involved bodies and market participants so that the transition to European standards proceeds consistently and effectively.

Non-financial reporting (information about a company’s environmental, social and governance factors) already plays a leading role in shaping Ukraine’s long-term fiscal policy and strengthening the trust of international partners.

“ESG data allow systematic assessment of environmental and social risks when planning public expenditures and provide the required level of transparency for international partners. This strengthens investor and donor confidence – which is critically important given Ukraine’s limited access to market borrowings,” – she said.

Some elements of sustainable development reporting are planned to be introduced in the public sector as part of the preparation of the Public Finance Management Strategy for 2026-2030. In particular, it is expected to:

• analyse international practices and national legislation to enable introduction of sustainability reporting in the public sector of Ukraine;
• improve the methodology for disclosing information about financial investments into state-owned enterprises and conglomerates in order to ensure high-quality reporting on overall assets and results of state sector entities and budgets.

Thus, transparency in sustainable development becomes a key element of modernizing financial governance both in the private and public sectors, and an important precondition for Ukraine’s integration into the European economic space.

Regarding the issuance of green or sustainable sovereign bonds, the legislative and regulatory basis for this in Ukraine is already partly formed and harmonised with international practices. This is an important element of preparation for systematic use of sustainable financing instruments in the future.

“The question of issuing green or sustainable sovereign bonds remains relevant for Ukraine and can be considered once access to international capital markets is restored. This will become possible provided that economic and security preconditions allow doing so at an acceptable cost and without risks to debt sustainability,” – concluded Olga Zykova.