Sergii Marchenko: Frozen russian assets should become a source of financing for Ukraine’s needs

In an interview with Euronews, Minister of Finance of Ukraine Sergii Marchenko spoke about the State Budget financing needs for 2027, prospects for using frozen russian assets, the possibility of accelerating international financing, as well as further cooperation with the European Union and other donors.

According to the Minister, Ukraine’s annual external financing needs remain at around USD 50 billion. At the same time, the preliminary uncovered financing gap for 2027 is estimated at USD 32.6 billion.

Key takeaways from the interview:

Frozen russian assets should work for Ukraine

Ukraine fully supports initiatives by European countries to bring the use of frozen russian assets back to the agenda.

A broad coalition of EU Member States should join this discussion. With the war potentially continuing into next year, Ukraine needs additional sources of financing, and using russian assets is a fair and justified solution.

One possible approach would be to transfer the custody of the assets from Belgian jurisdiction to the European Union level. This would allow responsibility to be shared among all EU Member States and reduce risks for individual countries. This should become a shared responsibility of the European Union as a whole.

New sources of financing for Ukraine

The EU’s current Multiannual Financial Framework runs until 2027, while the scope for additional contributions within the existing budget is limited. European partners therefore need to look more broadly at potential sources of support for Ukraine and consider innovative financing solutions.

This is particularly important given the intensification of russian attacks on logistics and critical infrastructure. Ukraine is preparing for a difficult winter and needs sufficient resources to withstand further escalation.

Ukraine’s overall annual external financing needs remain broadly unchanged at around USD 50 billion.

During the latest IMF mission in Kyiv, we discussed in detail the budget parameters and external financing needs. Ukraine’s and the Fund’s assessments are broadly aligned.

Implementation of reforms is linked to international support

A significant share of reforms and legislative decisions is directly linked to the receipt of international financing.

The Government continues its active cooperation with the Verkhovna Rada to adopt legislation necessary for Ukraine to fulfil its international commitments.

Delays in adopting the required legislation may affect the timing of disbursements and create additional risks for the Government’s ability to meet its budgetary obligations.