Russia’s illegal invasion of Ukraine is the main cause of the world crisis. This was underscored by Minister of Finance of Ukraine Serhiy Marchenko during the discussion “War in Ukraine: Financing the Victory.” The event was attended by representatives of the European Commission, think tanks, and economists.
The participants discussed how Europe could financially support Ukraine in the short term to speed up the victory in the war.
Marchenko noted that most of the economic and financial problems in the world were caused by Russia’s unprovoked war.
“Ukraine can stop the aggressor and, as a result, the global impact of the war on the whole world, but we need support from the international community to win as soon as possible. Weapons, sanctions, financial aid are what we need the most,” the finance minister said.
At the same time, Marchenko emphasised that Ukraine had a stable economic situation before the war.
“Before the war, our deficit was 3%, and the debt to GDP was about 50%. However, the full-scale invasion dealt a severe blow to our economy, and we predict a GDP drop of more than 30% this year,” the finance minister added.
Marchenko also talked about the struggle on the financial front for eight months of full-scale war, particularly, about issuing war bonds, increasing the defence sector expenditures and ensuring all social expenditures, attracting $23.1 billion in external financing, as well as saving $6 billion, thanks to the agreement with Ukraine’s creditors on the suspension of debt payments until the end of 2023.
In 2023, Ukraine needs more than $3 billion in financial support every month just to cover social expenses. In addition, the state needs additional funding to restore critical infrastructure in the near future. The finance minister noted that Ukraine was counting on support from international partners, in particular colleagues from the European Union.