Olga Zykova discussed the 2027 State Budget financial needs and preparations for the URC in Tallinn with the Estonian delegation

Deputy Minister of Finance of Ukraine Olga Zykova held a meeting with the Undersecretary of the Ministry of Foreign Affairs of Estonia and Special Envoy for the Reconstruction of Ukraine, Mariin Ratnik. The meeting focused on the macro-financial situation, mobilizing resources through World Bank mechanisms, war risk insurance, and preparations for the Ukraine Recovery Conference (URC) to be held in Tallinn in January 2027. 

Olga Zykova outlined the current challenges of the financial system, emphasizing that due to the IMF program's updated assumptions regarding the duration of hostilities, the overall external financing needs for the next year remain high. Given this, Ukraine relies on the further consolidation of efforts by partner countries for the timely coverage of the state budget deficit. The Ukrainian side also expressed gratitude to Estonia for its previous support through World Bank mechanisms, particularly under the Special Program for Ukraine and Moldova Recovery (SPUR 1.0).

Separately, the participants discussed mobilizing funds through the new IDA Crisis Facility 2.0 instrument and the SPUR 2.0 program. The unique feature of this World Bank mechanism is that it allows partner contributions to be multiplied several times over, mobilizing significantly more financing for recovery. For its part, the Estonian delegation confirmed that it is currently considering making an additional contribution to this program as part of the ongoing budget process.

War risk insurance through the Multilateral Investment Guarantee Agency (MIGA) remains an important area of cooperation. The Deputy Minister of Finance emphasized the critical need for such insurance for small and medium-sized businesses, large enterprises, as well as logistics and warehouse infrastructure facilities. 

Finally, the participants coordinated their vision for the upcoming Ukraine Recovery Conference (URC 2027) in Tallinn. Both sides aim to make the event as practical as possible, particularly by developing a clear taxonomy of recovery needs to achieve concrete results in attracting investments.

Background 

SPUR 2.0 (Special Program for Ukraine Recovery) is a special World Bank Group financing program created to support essential services and Ukraine's recovery during the war. The unique feature of the instrument is the leverage effect: thanks to the IDA balance sheet, donor contributions can be multiplied up to three times (e.g., USD 2 billion in contributions allow mobilizing up to USD 6 billion in financing).

IDA Crisis Facility 2.0 (IDA CF 2.0) is an umbrella structure of the International Development Association (IDA) that allows for the rapid creation of special crisis-response programs and the mobilization of donor resources for countries requiring large-scale reconstruction.

MIGA (Multilateral Investment Guarantee Agency) is a World Bank Group institution that provides political and war risk insurance, which is critical for attracting private investment in Ukraine's recovery.