On November 11, Minister of Finance of Ukraine Sergii Marchenko and Minister of Finance of Sweden Elisabeth Svantesson discussed in Kyiv the state of Ukraine’s financial system, budgetary needs for 2024 and Ukraine’s European integration.

The heads of the Ministries of Finance of Ukraine and Sweden also visited Makariv, Bucha and Irpin in Kyiv region, which suffered from the temporary occupation and armed aggression of russia. They paid tribute to the Ukrainians who became victims of russia’s war.

“Sweden’s support and solidarity have played an important role for Ukraine since the first days of the full-scale war. This includes financial assistance, military and humanitarian support. Sweden and Ukraine have a long history of strong and fruitful cooperation, and we are committed to further expanding our partnership,” Sergii Marchenko emphasized during the meeting.

Sweden’s direct budget support during the full-scale war has reached about EUR 45 million.

As for the state of Ukraine’s economy, the Minister of Finance of Ukraine noted that the latest economic indicators were mostly positive. The GDP forecast envisages a growth of up to 5% in 2023, while inflation slowed down to 5.3% in October this year, compared to 7.1% in September and 26.6% in 2022. Economic activity is recovering, which is driving tax revenue growth.

International assistance plays an important role in maintaining financial stability. Sergii Marchenko noted that rhythmic external financing next year is vital. The need for external financing in 2024 will reach about USD 41 billion. Given that all internal State Budget revenues and domestic borrowings are directed to the security and defense sector, funds from foreign donors are needed to finance critical social and humanitarian expenditures.

Sergii Marchenko noted that it is important for Ukraine to maintain comprehensive support from the EU. Ukraine and the European Union continue to work actively to prepare for the launch of the Ukraine Facility for 2024-2027 with a total amount of EUR 50 billion. The European Parliament recently supported the creation of this instrument. The Government of Ukraine has already submitted to the European Commission a preliminary draft reform plan for the Ukraine Facility.

The parties also discussed the results of Ukraine’s implementation of measures and policies for integration into the European Union. On November 8, 2023, the European Commission recommended starting negotiations on Ukraine’s accession to the EU.

“This is a historic day for our country. I am grateful to Sweden and all our EU partners for recognizing Ukraine’s transformation processes in the face of war. The Government of Ukraine implements the necessary policies and structural reforms, and harmonizes Ukrainian legislation with the EU for comprehensive European integration,” said Sergii Marchenko.