Ukraine has attracted about USD 72 billion budget support from the G7 and the EU since February 2022: Sergii Marchenko met with G7 finance ministers
In the framework of the Spring Meetings of the IMF and the World Bank, Minister of Finance of Ukraine Sergii Marchenko met with the finance ministers of the G7 countries.
In particular, with U.S. Secretary of the Treasury Janet Yellen, Italian Minister of Economy and Finance Giancarlo Giorgetti, Japanese Minister of Finance Shunichi Suzuki, UK Chancellor of the Exchequer Jeremy Hunt and German Federal Minister of Finance Christian Lindner.
The focus was on covering the priorities of the Ukrainian State Budget for the current and next year, as well as on the use of frozen assets of russia in favor of Ukraine.
"Aid from the G7 and the EU has become a key part of the budget support, which since February 24, 2022 has amounted to about USD 72 billion. This is an extremely significant contribution to Ukraine's financial stability in the face of uncertainty due to the war. The support of the G7 countries is not limited to budgetary funding. It also includes huge military, humanitarian assistance and sanctions against the aggressor country. Unity and consolidation of partners' efforts are imperative now more than ever. Backing Ukraine translates into supporting a stable world order and making an investment in global security," the Minister of Finance of Ukraine said.
In total, since the beginning of the full-scale invasion, the Ministry of Finance of Ukraine has attracted about USD 83.7 billion of external financing to the State Budget. The largest donors are the EU, the US, the IMF, Japan, Canada, the UK and the World Bank. The G7 partners noted the efforts of the Government of Ukraine to adapt the financial system to the war conditions and assured of further support.
In addition, Sergii Marchenko expressed gratitude to Italy, which holds the G7 presidency in 2024, for supporting the Ukrainian issue on the agenda of international events. On April 17, Sergii Marchenko delivered a speech at the G7 financial bloc meeting during the IMF and World Bank Spring Meetings.
In light of the ongoing hostilities, international support is indispensable. About half of State Budget spending, or more than 22% of GDP, is allocated to defense and security. This part is financed by the Government of Ukraine at the expense of domestic revenues. At the same time, the support of international partners is necessary to ensure timely social spending. This was stated by Sergii Marchenko to the partners during the meetings.
A topical issue for discussion was the use of frozen russian assets. The Ukrainian Minister of Finance stressed the imperative of coordinating efforts to reach a equitable solution.
"Initially, when Ukraine broached the notion of confiscating Russian assets to restore and support Ukraine's economy, the task appeared formidable. However, as of 2024, we find ourselves at a juncture where presidents, finance ministers from allied nations, and heads of international financial institutions advocate for the seizure of frozen assets and actively collaborate to devise mechanisms for their transfer to Ukraine. With collective effort, I am optimistic that we will navigate towards a solution for this matter," added Sergii Marchenko.
International partners agreed that russian assets should become a significant resource to meet Ukraine's urgent needs.