Sergii Marchenko at G7 Meeting: Ukraine needs predictable financing for 2027 backed by frozen russian assets
Ukraine’s Minister of Finance, Sergii Marchenko, joined virtually the meeting of G7 Finance Ministers and Central Bank Governors virtually, held on the sidelines of the IMF and World Bank Annual Meetings in Bangkok.
In his remarks, the Minister outlined the current challenges facing Ukraine’s economy and public finances amid intensified russian attacks, the country’s international financing needs for 2027, and the importance of securing long-term and predictable funding for budgetary and defence needs.
Sergii Marchenko thanked G7 partners for their continued support and stressed that Ukraine is going through one of the most difficult periods since the start of Russia’s full-scale invasion.
Impact of the War on the Economy and Public Finances
The Minister highlighted the significant intensification of russian missile and drone attacks. Systematic strikes on energy facilities, transport infrastructure and businesses directly affect economic activity, employment, export capacity and tax revenues.
This puts additional pressure on public finances and results in revenue shortfalls for the State Budget. At the same time, Ukraine continues to fully finance its key priorities, including defence, pensions, salaries and social payments.
The Minister also emphasised Ukraine’s continued commitment to implementing reforms necessary to secure international financial assistance. By the end of 2026, Ukraine expects to receive an additional USD 25 billion in international financing for the State Budget.
Financing for 2027
Particular attention was paid to ensuring Ukraine’s financial stability in 2027.
Russia is preparing for a long war. Ukraine’s financial and military response, together with its partners, must therefore be equally long-term, predictable and sustainable.
The Minister stressed that international support must be provided on terms that do not create an additional debt burden for Ukraine.
In particular, it is essential to ensure that financing mechanisms are debt-neutral, avoiding any increase in debt servicing costs or accumulation of additional debt obligations. This includes mechanisms backed by revenues generated from frozen russian assets.
The parties also discussed financing Ukraine’s defence needs in 2027. Total defence requirements are estimated at EUR 70 billion, of which EUR 40 billion currently remains unfunded.
In closing, the Minister reaffirmed that Ukraine continues to maintain macro-financial stability, fulfil its international commitments and implement reforms. In particular, this week, the Verkhovna Rada adopted critical legislation necessary to unlock further international financing.
At the same time, timely decisions by international partners on financial support for 2027 are crucial to preserving the stability Ukraine has achieved.