Sanctions do not have enough impact on russia. We should focus on countering their circumvention: Sergii Marchenko at the meeting of the G7 financial bloc

Minister of Finance of Ukraine Sergii Marchenko gave a speech at the meeting of the G7 financial bloc, during the working visit to the U.S. The session was attended by G7 finance ministers and central bank governors, the IMF, the World Bank, and the European Commission leaders. 

The topics of discussion included the current state of Ukraine's economy, unfunded budgetary needs, priorities for Ukraine's immediate recovery this year, and the increased sanctions pressure on russia.

Sergii Marchenko thanked the partners from the G7 and the EU, as well as international financial institutions for their comprehensive support of Ukraine in maintaining macroeconomic stability. 

Finance ministers and leaders of the EU, IMF and World Bank noted the high adaptation of the economy to wartime conditions and the importance of continuing to maintain financial stability, as well as the efforts of the Ukrainian authorities to achieve this. 

In the speech, the Minister of Finance spoke about the current state of Ukraine's budget system, the needs for recovery and the need to intensify cooperation with international financial organizations and other donors.

"This year, we have predictability and regularity in financing the State Budget, including due to an effective tax policy and an increase in our own revenues to the State Budget. The IMF Extended Fund Facility program has provided us with more confidence in the receipt of external financing by the end of the year and allowed us to focus on the recovery and reconstruction of Ukraine," said Sergii Marchenko.

Sergii Marchenko also noted that sanctions against russia are not working enough effectively and urged partners to focus on monitoring compliance with sanctions and imposing them against those countries that help russia circumvent them: "There should be a strong signal from EU and U.S. to countries, companies and persons who have re-exported banned commodities and things to russia."

In the context of the recovery, the Minister of Finance noted that russia is causing huge damage to the people of Ukraine and must pay for it. 

"We should accelerate the procedures for directing the frozen assets of russia for the needs of Ukraine. After all, the UN has already officially recognized that russia must “bear the legal consequences of all of its internationally wrongful acts, including reparations”.