Today, on August 23, Minister of Finance of Ukraine Sergii Marchenko met with Member of the German Bundestag from the Social Democratic Party Andreas Schwarz and Member of the Bundestag from the Alliance 90/The Greens Sebastian Schafer.
The parties discussed the current state of Ukraine’s financial system, joint efforts to restore Ukraine and sanctions pressure on russia.
“Germany’s support and solidarity since the first days of the full-scale war have played a crucial role in maintaining stability in Ukraine. As Minister of Finance, I am particularly grateful for the direct budget support which has reached EUR 1.55 billion since February 24, 2022. This allowed us to reduce the burden on the State Budget of Ukraine and continue to finance priority budget expenditures in a timely manner and in full,” said Sergii Marchenko.
Regarding the state of the economy, the Minister of Finance said that the current situation is under control. The Government of Ukraine is implementing a set of measures to increase domestic revenues both by increasing tax revenues and borrowing on the domestic market. International partners have assured their support in financing the current year’s budget deficit of USD 42.4 billion.
The parties also discussed the budgetary needs of the Ministry of Finance of Ukraine for 2024. Military expenditures are planned at the level of 2023 and, accordingly, the budget deficit is projected to be no less than this year. In view of this, there is a significant need for predictable and rhythmic financial support for the next year at the level not less than this year.
In the context of the recovery, Sergii Marchenko and the Bundestag members emphasized the importance of cooperation between Ukraine and Germany, in particular in attracting German business to rebuild Ukraine.
The Minister of Finance also noted that the priority of the recovery is to create conditions for the return of Ukrainians home, which will also help to accelerate the economic recovery.
Discussing the effectiveness of sanctions against russia, Sergii Marchenko noted that the aggressor’s economy does not feel the pressure it deserves. In particular, due to new ways of circumventing sanctions with the help of third countries. The G7 countries should take all necessary measures to maximize the effectiveness of the restrictions and monitor their compliance.