The Government is taking steps to strengthen Ukraine's fiscal capacity, but international support remains vital: Sergii Marchenko at the meeting of the G7 financial bloc

Minister of Finance of Ukraine Sergii Marchenko gave a speech online at a meeting of finance ministers, central bank governors of the G7 member states, the IMF and World Bank, the European Commission and the OECD.

The key topics for discussion included the state of Ukraine's financial system, budgetary needs for 2025, and the launch of the Extraordinary Revenue Acceleration Loans for Ukraine (ERA) mechanism.

Sergii Marchenko acknowledged the pivotal role of G7 countries, the EU, and international financial institutions in maintaining Ukraine's economic stability during full-scale war, with total external financing reaching USD 89.6 billion.

In 2024, the state budget has already received USD 16 billion in budget support. The partners assured that they will provide the required amount of foreign aid in full, i.e. a total of USD 38 billion in 2024.

Minister of Finance detailed Government steps to increase fiscal resilience. In the first half of 2024, State budget tax and customs revenues reached USD 20,7 bln (+10% to the plan or + USD 1,6 billion).

The partners noted the effectiveness of the current financial policy of the Ministry of Finance of Ukraine. The G7 countries and international financial organizations assured that they would continue to provide assistance.

"The Ministry of Finance continues to take measures to develop its internal capacity. Recently, the Government proposed to the Parliament to amend the Tax Code to finance additional military expenditures. In 2024, it is necessary to mobilize additional UAH 500.3 billion to meet critical needs," the Minister of Finance of Ukraine said.  

At the same time, it was noted that international assistance continues to be an important element for maintaining financial stability in times of war. 

In this context, Sergii Marchenko urged the G7 countries to expedite  the technical solution for disbursing USD 50 billion to Ukraine from future revenues of frozen russian assets.

"The war is ongoing and significant financial needs remain. It is important to find mechanisms to provide Ukraine with the necessary funds from the first days of 2025. That is why we need to accelerate the development of procedures for using the revenues of frozen russian assets. USD 50 billion will allow us to meet Ukraine's most urgent needs in 2025 and to strengthen its resilience in the face of a large-scale war," the Minister of Finance added.