The Risks to Europe from a potential defeat of Ukraine far exceed the risks of implementing the Reparations Loan: Sergii Marchenko at the G7 Meeting

Today, Ukraine’s Minister of Finance Sergii Marchenko addressed his colleagues from the G7 countries, expressing gratitude for their unwavering support and leadership in countering russian aggression.

The event was held online with the participation of finance ministers and central bank governors of the G7 member states, as well as leadership from the IMF, the World Bank, the European Commission, and the OECD.

Among the key topics of the Minister’s address were the state of the financial system in 2025, the outlook and challenges for 2026, cooperation with the International Monetary Fund, and the importance of continuing comprehensive support for Ukraine.

He emphasized that coordinated actions by G7 countries throughout 2025 enabled Ukraine to endure yet another difficult year of full-scale war. ERA loans from G7 partners became an important pillar of financial resilience, helping Ukraine maintain macro-financial stability during critical moments. The country’s external financing needs for the current year have been fully met.

Sergii Marchenko expressed his gratitude to Canada and personally to Minister of Finance François-Philippe Champagne for their substantial contribution to securing international assistance for Ukraine during Canada’s G7 presidency in 2025.

The Minister outlined the parameters of Ukraine’s 2026 budget. The Ukrainian Parliament recently adopted another wartime budget, with 60% of expenditures allocated to defense. Ukraine strives for peace but is forced to prepare for the possible continuation of Russian aggression throughout the next year. In such a scenario, sustaining significant levels of external financing will be critically important.

He welcomed the positive decision of the EU Council to provide Ukraine with a EUR 90 billion loan. At the same time, he stressed that this funding does not fully cover Ukraine’s needs, making it necessary to continue work on implementing the Reparations Loan.

“Financial stability is strategically important during wartime. By strengthening it today, we bring a just peace closer. The Reparations Loan is a systemic, long-term solution. It will ensure sustainable defense capabilities and protect Europe from future conflicts. The risks to Europe from a potential defeat of Ukraine far exceed the risks of introducing the reparations mechanism,” the Minister of Finance stated.

Sergii Marchenko also underlined Ukraine’s unwavering commitment to reform and to strengthening the institutional capacity of the state. Implementing a comprehensive reform agenda enhances economic resilience and boosts the confidence of international partners. A key achievement is the staff-level agreement with the IMF on a new four-year financing program. Ukraine is actively working to fulfill all prior actions required for the program’s approval by the IMF Executive Board.