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Minister: Ukraine will need at least $42 billion in foreign financial aid in 2024

by Martin Fornusek August 9, 2023 7:34 PM 2 min read
Ukraine's Finance Minister Serhii Marchenko at the Ukraine Recovery Conference in London, UK, on Wednesday, June 21, 2023. (Photo credit: Chris J. Ratcliffe/Bloomberg via Getty Images)
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Ukraine will need at least $42 billion in foreign financial aid in 2024 due to high defense and security expenditures, Finance Minister Serhii Marchenko told Radio Free Europe/Radio Liberty (RFE/RL) in an interview on Aug. 9.

"Now (in this year), we have $42 billion in...external financing. For the next year, we are planning no smaller amount than that," Marchenko said.

"Why? Because we plan the budget of the security and defense sector at the level of 2023."

According to the minister, Ukraine secured financing for 2023, but it has not been yet confirmed that it will also receive the necessary aid in the following year.

As of today, the future financial aid includes $55 billion in a four-year aid package from the EU, Marchenko commented. He added that the International Monetary Fund will also provide support and voiced hope that the U.S. will contribute as well.

The EU proposed a four-year financial assistance package for Ukraine worth $55 billion on June 20, a sum to be covered by individual member states. The plan encountered opposition from Hungary, however.

Marchenko noted that for successful negotiations, Ukraine must also demonstrate its ability to fill the budget using internal resources. This includes an estimated Hr 1.3 trillion ($35 billion) in tax revenues.

Prime Minister Denys Shmyhal said on Aug. 3 that Ukraine plans to spend Hr 1.8 trillion (about $48 billion) from the state budget on the defense and security forces in 2023.

Ukraine faces not only growing defense expenditures due to the full-scale Russian invasion but also reconstruction and recovery costs. The World Bank's assessment in March said that Ukraine will need at least $411 billion for its future recovery, amounting to 2.6 times Ukraine's projected gross domestic product in 2022.

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