Ukraine continues to maintain prudent debt dynamics despite the full-scale war. During the first half of 2026, Ukraine’s state and state-guaranteed debt declined by more than $1.7 billion in U.S. dollar terms. At the same time, its value increased in hryvnia and euro terms, reflecting the inflow of concessional financing from international partners and exchange rate movements. The debt portfolio remains predominantly concessional, with concessional financing accounting for 66.4% of the total portfolio, while the share of state-guaranteed debt continued to decline, reaching 2.76% as of June 30.
As of June 30, Ukraine’s total state and state-guaranteed debt amounted to UAH 9,490.8 billion (EUR 185.5 billion or $211.6 billion), including:
– State external debt – UAH 7,249.2 billion (76.38%), or EUR 141.7 billion ($161.6 billion);
– State domestic debt – UAH 1,979.5 billion (20.86%), or EUR 38.7 billion ($44.1 billion);
– State-guaranteed debt – UAH 262.1 billion (2.76%), or EUR 5.1 billion.
Compared to the end of May 2026, total state and state-guaranteed debt increased by UAH 173.9 billion, $1.1 billion, and EUR 4.4 billion. The increase in June was primarily driven by the receipt of concessional financing from the European Union, with Ukraine’s obligations to the EU increasing by UAH 106.1 billion ($1.3 billion; EUR 2.4 billion), as well as new financing from the World Bank Group through the International Bank for Reconstruction and Development (IBRD) amounting to UAH 69.9 billion ($1.3 billion; EUR 1.4 billion).
Compared to the beginning of the year, state and state-guaranteed debt declined by $1.7 billion in U.S. dollar terms, while increasing by UAH 448.1 billion and EUR 4.1 billion. This divergence is explained by exchange rate effects: over the first half of the year, the U.S. dollar appreciated against both the hryvnia and the euro, while concessional financing from international partners continued to be disbursed regardless of the reporting currency.
The state-guaranteed debt continued to decline during the first half of 2026, decreasing from UAH 276.7 billion (EUR 5.55 billion) to UAH 262.1 billion (EUR 5.12 billion), a reduction of UAH 14.6 billion, or 5.3%. As a result, its share in total state and state-guaranteed debt fell from 3.06% to 2.76%.
The creditor structure of Ukraine’s state and state-guaranteed debt continues to be dominated by concessional loans provided by international financial institutions and foreign governments, which account for approximately 66.4% of the portfolio. The European Union remains Ukraine’s largest creditor: including the loan provided under the ERA mechanism, the EU accounts for UAH 3,710.3 billion (EUR 72.5 billion), or 39.1% of total state and state-guaranteed debt. Domestic debt represents approximately 21.5% of the portfolio, Eurobonds account for 8.8%, loans from commercial banks and other financial institutions represent 1.9%, while the remaining 1.4% consists of other liabilities. (Finance Ministry)