No need to act urgently to secure financing for 2025 - Ukrainian finance minister

MOSCOW. Dec 22 (Interfax) - There is no need to take unpopular measures in Ukraine to ensure state budget financing in 2025, which, however, is expected to be a challenging year from an expenditure standpoint, Ukrainian Finance Minister Sergei Marchenko said.

"We have more certainty for 2024. There are partners, a program with the International Monetary Fund. We accurately fulfill our obligations. But 2025 will be a year of challenges. However, we don't have enough information, factors that would indicate that we need to start taking measures as early as today to minimize risks in 2025. When the new year arrives, we will see clearly what is in store for us later and how to react to it," Ukrainian media quoted Marchenko as saying at an event in Kiev on Thursday.

The situation surrounding the need to look for financing in 2025 depends to a great extent on next year's financing of budgetary requirements, which, for their part, will be become clear in January-February, he said.

"To 'tighten the screws' and take unpopular measures already now is inadvisable and unreasonable [...] The main scenario is to work with key partners to ensure steady, I'd stress steady, financing," Marchenko said.

The Ukraine Facility program, which Ukraine counts on, will help guarantee long-term financing.

"We expect to receive the Ukraine Facility - an instrument that will allow us to get long-term assistance. We will be working with partners throughout the year to ensure financing in 2025. It's not easy, as electoral cycles shift the focus from Ukraine to other problems, including domestic ones. But we keep working. So there is hope that we will manage to replace these sources with others," Marchenko said.

Though the situation around financing for 2025 appears to be more difficult, the Finance Ministry plans to wait until January-February, when the picture regarding international assistance in 2024 should become clear, he said.

"I hope that we will have a clearer picture with regard to financing [in 2024] in January, maybe late February. We will have decisions on further assistance for Ukraine from the U.S. and the EU. Based on that, we will be able to understand the situation in 2025," Marchenko said.

Ukraine's external financing needs for 2024 are estimated at $37 billion, Marchenko said, adding that this figure does not include financing for development programs.