Ukraine Seeks $3 Billion Monthly in Aid from West to Meet Social Obligations

Written by Henrik Rothen

Feb.29 - 2024 9:15 AM CET

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Photo: Private
Photo: Private
Ukraine Seeks $3 Billion Monthly in Aid from West to Meet Social Obligations.

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Ukraine has declared a requirement for monthly financial aid amounting to $3 billion from Western nations to ensure the fulfillment of its social commitments to its citizens, as stated by Sergei Marchenko, the nation's Finance Minister.

During a presentation to the G7 financial group, Marchenko emphasized the critical nature of continuous and reliable fiscal support to uphold social expenditures. He highlighted that, without timely external financing, Ukraine faces significant financial instability.

"The need for external financing in 2024 is estimated to be around $3 billion monthly. The absence of prompt external financing could jeopardize our ability to meet our social obligations," he remarked.

Marchenko also shed light on the financial aid Ukraine has received since February 2022, totaling approximately $63 billion from G7 countries and the European Union. Despite the uncertainties surrounding international assistance, he noted that the Ukrainian Ministry of Finance has undertaken measures early this year to preserve the country's financial stability.

Recently, Marchenko acknowledged a growing shortfall in funds within Kyiv, yet assured that efforts are ongoing to secure resources to address the populace's needs. He anticipates the receipt of 4.5 billion euros from the European Union as part of a 50 billion euro agreement made on February 1, spanning from 2024 to 2027, and an additional $1.5 billion from the World Bank in March. "These funds are expected to sustain us through the first half of the year," he stated.

The necessity of Western financial support was underscored earlier in January by Ukrainian President Vladimir Zelensky, who cautioned that without such aid, Ukraine would struggle to disburse pensions to its 11 million retirees. Yulia Sviridenko, Ukraine's Minister of Economy, predicted a reversion to a "survival" economic mode without Western backing, foreseeing delays in the payment of wages to half a million government employees, 1.4 million educators, and pensions to 10 million retirees.

The Financial Times reports that Ukraine's 2024 budget, with a $41 billion deficit, relies heavily on Western financial support, with anticipated funds of $18 billion from the EU, $8.5 billion from the US, and $5.4 billion from the IMF, alongside contributions from the UK and development banks to bridge the shortfall.

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