Ukraine finance minister calls for use of Russian frozen assets from 2026
Ukraine’s Finance Minister Serhii Marchenko called on Group of Seven (G7) finance ministers to make Russia’s immobilized bank reserves available for Ukraine from the beginning of 2026, in a meeting held on Oct. 15 in Washington, D.C.
About $300 billion of Russia’s central bank’s foreign reserves were immobilized in 2022 after Russia launched its full-scale invasion of Ukraine. The European Commission is currently developing a "reparations loan" initiative that would lend 140 billion euros of these assets to Kyiv, which faces a financing shortfall of $60 billion for 2026 and 2027, according to Marchenko.
He expressed gratitude to the European Commission for its work on the scheme, and said that the loan should be the key tool for meeting Ukraine’s financial needs in 2026–2027.
“It is important that this instrument be unconditional for Ukraine and flexible in determining the allocation of funds,” a Finance Ministry statement said.
Marchenko is in D.C. this week with a Ukrainian delegation that includes Prime Minister Yuliia Svyrydenko for high-level meetings and the annual gathering of the World Bank and International Monetary Fund (IMF).
European leaders are racing to get Belgium on board ahead of a crucial leaders' meeting in Brussels next week. Belgian Prime Minister de Wever has expressed opposition to the plan due to legal risks.
About two-thirds of the immobilized assets are held by Belgium-based financial institution Euroclear.
The continuation of the war and mounting Russian attacks on Ukraine’s energy infrastructure are key reasons for the country’s need for financing. Ukraine spends most of its domestic tax revenues on defense and security.
The Oct. 15 meeting was also attended by central bank governors of the G7 member countries, as well as the leadership of the IMF, World Bank, and European Commission.
U.K. Prime Minister Sir Keir Starmer recently signalled his readiness to participate in a reparations loan. It is estimated that the U.K. holds about 25 billion pounds in immobilized assets.
In his statement, Marchenko also outlined Ukraine’s improving budget situation.
"Internal budget revenues are increasing. In 2025, budget expenditure coverage through internal revenues rose by 11% compared to 2024. Tax revenues show positive dynamics and are expected to reach around 37.2% of GDP in 2026," he said.
He added that next year’s budget is being crafted on the assumption that the war would continue.
