Minister of Finance of Ukraine Sergii Marchenko spoke online at a meeting of finance ministers, central bankers of the G7 countries, the IMF and World Bank, the European Commission and the OECD.

The state of the financial system in 2024, prospects and challenges for 2025, cooperation with the International Monetary Fund and the importance of continuing comprehensive support for Ukraine are among the key topics of the Minister of Finance’s speech.

This is the first meeting of the financial bloc in 2025 during Canada’s G7 presidency. Sergii Marchenko congratulated Dominiс LeBlanc, Minister of Finance of Canada, on the beginning of the G7 presidency and expressed gratitude for his steadfast support of Ukraine since the beginning of the full-scale russian invasion.

Representatives of Canada, the EU, the IMF, the World Bank, the OECD and other countries and international organizations expressed their support for the people of Ukraine in their fight against the aggressor and noted the efforts of the Ministry of Finance in maintaining macro-financial stability and implementing reforms.

Key points of Sergii Marchenko’s speech:

Support from partners. Financial, military and humanitarian aid, as well as sanctions against the aggressor, help Ukraine to effectively counter russian aggression and maintain financial stability in the face of extreme uncertainty.

Since February 2022, Ukraine has received more than USD 118 billion in direct budget support from key partners.

2024. The economy grew by 3.6% in 2024.

International financial assistance amounted to USD 41.7 billion in 2024. These funds were used to finance priority social and humanitarian expenditures of the State Budget.

The revenues of the general fund of the state budget provided by the Tax and Customs authorities increased by UAH 490 billion in 2024 compared to 2023.

2025. Security and defense is an absolute priority of the State Budget. In 2025, 26.3% of the country’s GDP will be spent on security and defense.

The need for international financing in 2025 remains significant and amounts to USD 39.3 billion.

The budget deficit is projected to decrease to 19.4% of GDP in 2025 from 24% in 2024. The positive dynamics of growth in state budget revenues remains, amounting to UAH 128.2 billion in January 2025, which is more than UAH 10 billion more than in 2024.

Cooperation with the IMF. The Extended Fund Facility (EFF) program is a record for Ukraine, as six successful reviews have already been conducted. Fulfillment of all obligations under the program is a priority for the Government of Ukraine. The mission for the seventh review of the Extended Fund Facility program is currently underway.

Reforms and European integration. The Ukraine Facility program has been the main financial support mechanism of the EU since 2024. Ukraine has already implemented 41 measures envisaged by the Ukraine Plan, which became the basis for a positive assessment by the European Commission for the 4th quarter of 2024.

In total, as a result of the successful implementation of reforms in 2024, Ukraine received EUR 16.1 billion in EU support, including EUR 3 billion in grants.

The Council of the EU is expected to approve a decision to disburse a new tranche of EUR 3.5 billion in the near future, which will allow the Government to continue financing priority expenditures.

Ukraine remains committed to the reform agenda, fulfilling its obligations under all cooperation programs.

Wartime economy and military industries. The production capacity of the Ukrainian defense industry has increased several times in the last year alone. This is transforming the economy and making Ukraine a leader in defense innovation. New technological solutions are developed and implemented much faster and cheaper than traditional defense programs in other countries with long design cycles. As an example – the growing number of drones, “Bohdana” howitzers, and other weapons that deter the aggressor in Ukraine.

The Minister of Finance called on partners to invest in the Ukrainian defense industry as it is an investment in a peaceful future. Defense technologies will become one of the leading drivers of rapid economic growth in the post-war period.

In conclusion, Sergii Marchenko said that a strong, sovereign Ukraine that recovers quickly and integrates with the EU will open up new opportunities for trade, innovation and growth around the world, ensuring prosperity for generations to come.