Funding deficit in 2025: what can be covered?

According to the Ministry of Finance of Ukraine, the necessity for financing civil expenses next year will amount to $32 billion according to preliminary calculations.

The currently projected revenue for 2025 consists of two sources of support:

€12.5 billion from the European Union under the #UkraineFacility
and $1.8 billion from the IMF

This means that the deficit will amount to at least $17 billion. Currently, it is not known for sure how this shortfall will be covered.

But there is a potential solution – frozen Russian assets. Western partners are already actively discussing providing Ukraine in 2025 with the part of the future revenues that these frozen assets will bring.

The experts of the Consortium #RRR4U see 3 important aspects in this decision, which are still being discussed as of today by partners. All of them were highlighted during the presentation of the new issue of the Monitoring Ukraine’s Fulfillment of the Terms of Key International Financing Programs from the IMF and the EU: https://bit.ly/3VYw9eD

So, will the transfer of profits from Russian assets be carried out in the form of a grant or still a loan? Experts of the #RRR4U note that the first option is, of course, more acceptable for us, because the debt burden on Ukraine is growing every month and has almost reached 90-100% of GDP.
Will these funds be unconditional, or will the transfer be made subject to the implementation of certain reforms? Our experts are almost one hundred percent sure about the second option.
And finally, will it be possible to use the received funds for military purposes? There is no final decision on this issue yet, but in the case of a positive decision by the partners, it may affect the dynamics of hostilities in a better way for Ukraine.

Learn more details from the video of the

RRR4U (Resilience, Reconstruction and Relief for Ukraine) is a consortium of four Ukrainian civil society organizations: Center for Economic Strategy, IER, Institute of Analytics and Advocacy and DiXi Group.

The event was supported by the International Renaissance Foundation.