Marchenko: 2027 budget deficit to reach $78bn without use of frozen Russian assets

Financial gap in 2027 could reach $78 billion

Ukraine's Finance Minister Serhiy Marchenko called on the European Union to make a decision on the use of frozen Russian assets to cover the state's financial needs in 2027. According to him, if international partners do not increase the scale of support, the funding deficit for next year could reach $78 billion.

«Нам потрібно, щоб наші друзі, наші європейські політики, були достатньо сміливими та зробили деякі сміливі дії. На жаль, війна триває довше, війна важча, і нам потрібно забезпечити певне вирішення питання заморожених російських активів або надати інші засоби для виживання» ("We need our friends, our European politicians, to be bold enough and take some bold actions. Unfortunately, the war is lasting longer, the war is heavier, and we need to ensure a certain resolution of the issue of frozen Russian assets or provide other means for survival"), Marchenko emphasised, Euronews reports.

Searching for a protection mechanism for Belgium

A separate aspect of the discussions was the question of potentially transferring assets from the Belgian depository Euroclear to a special custodian structure that would belong directly to the European Union. Such a mechanism is being considered, among other things, to reduce risks for Belgium, where a significant part of the frozen Russian funds is held.

The Ukrainian side insists that the decision must be made at the level of the entire EU and have a solid legal basis. This will allow these funds to be used to finance Ukraine's needs.

Status of frozen funds and the Cabinet's position

The Cabinet of Ministers also confirmed that one of the key sources for covering Ukraine's future financial needs should be the frozen Russian assets.

According to the European Commission, more than €210 billion in assets of the Central Bank of Russia are currently immobilised in EU countries. The European Union is already using the extraordinary income obtained from managing these assets to support Ukraine.