russia’s illegal invasion of Ukraine is the main cause of the world crisis. This was emphasized by the Minister of Finance of Ukraine Sergii Marchenko during the discussion “War in Ukraine: Financing the victory”, organized by the Bruegel think tank. The event was attended by representatives of the European Commission, think tanks and economists.
During the event, parties discussed how Europe could financially support Ukraine in the short term to accelerate the victory in the war.
Sergii Marchenko noted that most of the economic and financial problems in the world were caused by the unprovoked war of russia.
“Ukraine is able to stop the aggressor and, as a result, the global impact of the war on the whole world, but we need the support of the international community to win in quick manner. Weapons, sanctions, financial assistance are what we need the most”, said the Minister of Finance.
At the same time, Sergii Marchenko emphasized that Ukraine had a stable economic situation before the war.
“Before the war, our deficit was 3% of the GDP, and the debt to GDP ratio was about 50%. However, the full-scale invasion has dealt a severe blow to our economy, and we predict a decline in GDP of more than 30% this year”, added the Minister of Finance.
Sergii Marchenko also spoke about the struggle on the financial battlefront during 8 months of full-scale war. In particular, about issuing wartime bonds, increasing the financing of the defense field and ensuring all social expenditures, attracting $23.1 billion of external financing, as well as saving about $6 billion due to the agreement with Ukraine’s creditors on the suspension of debt payments for two year.
In 2023, Ukraine needs more than $3 billion of financial support every month just to cover social expenses. In addition, the state needs additional funding to recover critical infrastructure in the near term. The Minister of Finance noted that Ukraine hoped for the support of international partners, in particular colleagues from the European Union. (Government portal/Business World Magazine)
