Ukraine’s Finance Minister and Governor of Banque de France discussed Ukraine’s budgetary needs for 2026 in Kyiv

On September 18, Ukraine’s Minister of Finance Sergii Marchenko and the Governor of the Banque de France François Villeroy de Galhau discussed in Kyiv the state of Ukraine’s financial system, budgetary needs for 2026, cooperation with the IMF, and reforms.

“I am grateful that France continues to stand with Ukraine and remains a reliable partner on the path to a just and lasting peace. Given that the war continues, today more than ever, Ukraine needs the support of partners to ensure the financial stability of the country and to finance priority budget expenditures,” emphasized Sergii Marchenko during the meeting.

The Minister of Finance noted that under the conditions of full-scale war, the Government directs all domestic financial resources to defense spending. In the draft budget for next year, around EUR 60 billion is allocated to the security and defense sector.

Therefore, the country relies on partner support to cover social expenditures. Currently, Ukraine faces an uncovered external financing need of about EUR 16 billion for 2026. The Government is actively engaging in dialogue with key partners - the IMF, EU, and G7 countries - to secure this funding.

According to Sergii Marchenko, the Government and international partners are currently considering various mechanisms and options to support Ukraine. One such solution is the recently presented European Commission initiative on a “reparation loan” backed by frozen russian assets.

Regarding cooperation with the International Monetary Fund, Ukraine expects the launch of a new cooperation program to support financial stability for the coming years, considering the ongoing war with russia. Recently, the Government of Ukraine submitted a letter to the IMF requesting a new program that better addresses Ukraine’s current and medium-term priorities and takes into account the war horizon.

According to the Kiel Institute for the World Economy (Kiel, Germany), France’s total assistance (financial, humanitarian, and military) since the start of the full-scale war amounts to about EUR 7.6 billion.

Sergii Marchenko thanked France for supporting the EU’s Ukraine Facility instrument, through which more than EUR 22.6 billion has already been mobilized to the State Budget, and the ERA mechanism (revenues from frozen russian assets) — with EUR 10 billion already disbursed by the EU to Ukraine. An additional EUR 8.1 billion (under the ERA loan program) is expected to be allocated by the end of 2025.

The parties also discussed Ukraine’s European integration progress. The Government is implementing the necessary structural reforms and aligning Ukraine’s legislation with the EU for full integration. French partners acknowledged Ukraine’s reform achievements despite the ongoing full-scale war with russia.

The meeting was also attended by Ukraine’s Deputy Minister of Finance for European Integration Yuriy Draganchuk, Deputy Minister of Finance Olga Zykova, and the Ambassador of France to Ukraine Gaël Veyssiere.

For his part, the Governor of the Banque de France assured that France’s financial support for Ukraine would be sustained. The parties agreed to continue dialogue on expanding Ukraine’s budgetary support mechanisms in 2026 and beyond.