Sergii Marchenko: Ukraine’s external financing needs for 2025 are fully secured. We must remain financially prepared for any scenario in the coming year

Minister of Finance of Ukraine Sergii Marchenko addressed the G7 Finance Track meeting during his working visit to Washington, D.C., for the IMF and World Bank Spring Meetings.

The meeting brought together finance ministers and central bank governors from G7 countries, as well as leadership from the IMF, World Bank, and European Commission.

Discussions focused on the state of Ukraine’s financial system in 2025 and the importance of sustained, comprehensive support both during the full-scale war and in the post-war recovery phase.

Today, Russia once again launched a massive missile attack across Ukraine, taking civilian lives and causing significant destruction. The Minister of Finance of Ukraine informed international partners of the urgent need to strengthen Ukraine’s air defense. He also called for increased investment in Ukraine’s defense industry, so that Ukrainians can effectively resist the aggressor and secure a peaceful future.

Minister Marchenko thanked Canada’s Minister of Finance François-Philippe Champagne for his leadership within the G7 in advocating for Ukraine, and expressed gratitude to all international partners present for their consistent and significant support. He also emphasized the importance of continued assistance into 2026:

“This year, Ukraine has received USD 16.8 billion in budgetary support from key partners. Thanks to our effective cooperation, Ukraine’s external financing needs for 2025 are fully secured. However, we must remain financially prepared for any development. Continued international support in 2026 will be critically important for maintaining financial stability, rebuilding the economy, and attracting foreign investment.”

Ukraine’s external financing needs for 2025 remain significant, amounting to USD 39.3 billion.

The Minister highlighted the implementation of the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism worth USD 50 billion. These funds are being serviced and repaid using the revenues from frozen russian sovereign assets.

Ukraine has already signed agreements with the G7 countries and the European Commission. Funds are being disbursed to the State Budget on a stable and predictable basis, allowing the Government to finance all priority expenditures in full and on time.

The next essential step, according to the Minister, is the full confiscation of russian sovereign assets. He stressed that this is possible through a political decision by the G7 countries.

In his remarks, Minister Marchenko also underlined the strengthening of Ukraine’s financial system. With growing domestic revenues and stable financing, Ukraine is gradually reducing its fiscal deficit.

In Q1 2025, general fund revenues of the State Budget increased by USD 1 billion compared to the same period in 2024. Additionally, nearly USD 3 billion was raised through government bond issuance. The budget deficit is projected to decline from 24% of GDP in 2024 to 19.4% in 2025.

This progress is the result of consistent Government action and the implementation of structural reforms, in close coordination with international partners.

Minister Marchenko noted Ukraine’s successful completion of the seventh review under the IMF program – the strongest result in the history of Ukraine’s cooperation with the Fund. Ukraine is also making solid progress in meeting the indicators of the Ukraine Plan under the EU’s Ukraine Facility and performing the terms of World Bank programs.

Meeting participants expressed their continued support for Ukraine and commended the efforts of the Ministry of Finance in maintaining macro-financial stability and advancing reforms.