For the next year, Ukraine allocated 26.3% of its gross domestic product (GDP) to defense and security expenditures, including Hr 740 billion ($17.7 billion) for arms purchases and Hr 50 billion ($1.2 billion) on the production and purchase of drones.
Ukraine and the World Bank signed a loan agreement worth $4.8 billion, which Kyiv will use for priority budget expenditures, the Finance Ministry said in a statement.
Since the start of Russia's full-scale invasion in February 2022, Ukraine has received over $100 billion in foreign-backed external financing to support Ukraine's state budget, the country's finance ministry announced on Nov. 15.
Editor’s note: This is issue 76 of Ukrainian lawmaker Yaroslav Zhelezniak’s weekly “Ukrainian Economy in Brief” newsletter, covering events from Sept. 30- Oct. 6, 2024. The digest highlights steps taken in the Ukrainian parliament related to business, economics, and international financial programs. The Kyiv Independent is republishing with
Maxwell Kushnir is a research analyst at the IMF. The contents of this article do not represent the views of any entity associated with the IMF, including staff, management or members of the Executive Board. Only publicly available data is used. Russia’s invasion has caused untold devastation across Ukraine,
Ukrainian banks continue posting record profits, earning nearly Hr 120 billion ($2.9 billion) in the first seven months of 2024. The result is 22% higher than the same period last year, analytics website Opendatabot reported. As the Kyiv Independent previously reported, Ukrainian banks are enjoying an influx of cash,
According to the Finance Ministry, the savings represent "one of the largest debt write-offs in recent sovereign debt restructurings."
Ukraine has received the necessary votes from private creditors to restructure its more than $20 billion in international bonds, providing the country with the necessary debt relief to continue financing its fight against Russia's invasion.
"The intensity of hostilities and the risks of a prolonged war, as well as the systematic growth of security and defense sector expenditures, are the key factors that influence the growth of financial needs," Deputy Finance Minister Olha Zykova said.
Editor’s note: This is issue 68 of Ukrainian lawmaker Yaroslav Zhelezniak’s weekly “Ukrainian Economy in Brief” newsletter, covering events from Aug. 5- Aug. 11, 2024. The digest highlights steps taken in the Ukrainian parliament related to business, economics, and international financial programs. The Kyiv Independent is republishing with
Marchenko said that the disbursement of U.S. military aid has been "slow," more than three months after Congress approved $27 billion worth of direct military aid for Ukraine. This included $13.8 billion for Ukraine to buy advanced weapons and another $13.8 billion to purchase U.S. defense systems.
Ukraine's Finance Ministry announced on Aug. 9 the terms of the exchange of old bonds for newly issued securities, launching the process of restructuring Ukraine's external debt on Eurobonds.
"This is the first tranche of direct budget support from the United States in 2024. The planned amount of financial assistance from the United States for the current year is $7.8 billion," the statement read.
"Now we are constantly discussing with our partners that we need additional financial assurance because the war will continue in 2025, and we need to have a buffer," the minister said. According to Marchenko, the current pledges from partners will not be sufficient.
Based on the deal, Ukraine stands to save $11.4 billion over the next three years and $22.75 billion by 2033, Prime Minister Denys Shmyhal explained.
There is no indication that Ukraine's infrastructure agency has misused foreign funds, the EU Delegation to Ukraine told the Kyiv Independent on July 7.
Ukraine's Finance Ministry accused the agency of misuse of Western funds in a response to Ukrainian online newspaper Ekonomichna Pravda. Specifically, the ministry claimed that the EU Delegation to Ukraine was unhappy with the agency failing to use the 150 million euros allocated by the European Commission.
Ukraine needs $9.5 billion for rapid recovery this year, namely in the defense industry, energy, housing, agricultural, natural resources, and the IT sector, the Finance Ministry said on June 20.
Ukraine's and Germany's finance ministries signed on June 11 a joint declaration of intent on plans to strengthen bilateral cooperation to support Ukraine's recovery after the end of Russia's full scale war, Reuters reported.
After the review, nearly $2.2 billion in funds may be allocated in June under the EFF.
"Thanks to the funds raised from domestic government bonds, we were able to finance more than 200 days of our security and defense, which is equivalent to 15% of Ukraine's GDP (gross domestic product) in 2023. Investments in government bonds have become the second largest source of financing for the State Budget after international aid," Finance Minister Serhii Marchenko said.
The following is the Feb. 20, 2024 edition of our Ukraine Business Roundup weekly newsletter. To get the biggest news in business and tech from Ukraine directly in your inbox, subscribe here. Tokyo summit Japanese and Ukrainian representatives met in Tokyo on Feb. 19 to foster dialogue between both government
shop now
(Updated: )
