Olga Zykova: Ukraine needs USD 9.5 billion in external financing for priority recovery in 2024

On March 4, Deputy Minister of Finance of Ukraine Olga Zykova participated as a keynote speaker in the second Ukraine Roundtable: Infrastructure Reconstruction and Financing, dedicated to the reconstruction of Ukraine and the role of the public and private sectors in the process. The event was held in Paris, France.

Other key speakers at the event were Government Commissioner for Public Debt Management of Ukraine Yuriy Butsa and Special Envoy of the President of France for Ukraine's Relief and Reconstruction Pierre Heilbronn.

During her speech, Olga Zykova thanked the international partners for their support and emphasised Ukraine's needs in 2024.

"Since February 2022, the Government of Ukraine has been working hard to maintain macroeconomic stability in the face of extreme uncertainty and challenges. And the support of international partners is extremely important, as we direct all domestic resources to resist the aggressor. Ensuring the priorities of the State Budget as well as the restoration of the country are crucial for economic development and the return of Ukrainians home," the Deputy Minister of Finance added.

Ukraine's need for external financing to cover the state budget deficit in 2024 is about USD 38 billion.

Olga Zykova also noted that rapid recovery is a key priority, as it contributes to creating safe living conditions for Ukrainians and to the country's economic recovery.

In this context, she emphasized the key role of the Multi-Agency Coordination Donor Platform in consolidating the efforts of international partners to restore Ukraine.

According to the Third Rapid Damage and Recovery Needs Assessment (RDNA3) developed jointly by the Government of Ukraine, the World Bank, the European Commission and the UN representatives, Ukraine needs about USD 15 billion for rapid recovery in 2024. Of this amount, about USD 5.5 billion has already been financed from the State Budget and donor support. Thus, Ukraine needs an additional USD 9.5 billion to finance the priority recovery needs.

The participants stressed the importance of attracting foreign investment now, without waiting for the post-war reconstruction stage. In turn, the Government of Ukraine has identified priority sectors. These include the defence industry, energy, construction, agriculture, natural resources, digital technologies and the IT sector. 

"Involving the private sector in the recovery process is an integral part of Ukraine's sustainable growth. We are working with our partners to achieve this through a number of mechanisms, including the introduction of war risk insurance, improved conditions for investment projects, public-private partnerships and the development of industrial parks," added Olga Zykova. 

The Government of Ukraine, with the support of partners, is actively working to meet the urgent needs in the area of recovery. In 2023, more than USD 1 billion was allocated for the restoration of the housing sector, most of which was used to repair and reconstruct buildings damaged by the armed aggression of russia. In the transport sector, motorways, highways and other roads damaged in Ukraine were repaired. In the education sector, about 500 educational institutions have been rebuilt, and the share of educational institutions with bomb shelters has increased significantly.