The budget for 2026 is being devised with the potential continuation of armed conflicts in mind: Ukraine requires $45 billion in overseas funding.
The Ukrainian Finance Ministry is required to present a draft law concerning the State Budget of Ukraine for 2026 to the Verkhovna Rada before September 15. A crucial question during the planning phase centered on whether military actions would persist. Collaboration with the IMF should be structured in accordance.
Finance Minister Serhiy Marchenko revealed on August 18 that the Cabinet of Ministers will present a budgetary proposal based on the assumption that military operations will extend throughout 2026.
“At this moment, we have no alternative but to maintain the scenario that assumes the continuation of warfare through 2026.
Should negotiations yield favorable outcomes, and by year’s end, a firm assurance arises that the war will cease, leading to a stable and enduring peace for Ukraine, we will, undoubtedly, re-evaluate this methodology. However, currently, we must maintain a pragmatic view. Consequently, we are formulating our 2026 budget, taking into account the ongoing hostilities.
We are making arrangements accordingly for our requirements, which currently amount to $45 billion—representing the demand for external financial aid, not merely the deficit. This constitutes the need, encompassing both the deficit and debt repayment. Presently, this demand remains partially unfulfilled; we are in discussions with our primary allies, the G7 nations and the EU. And I trust that collectively, along with the IMF and other involved parties, we will achieve a suitable solution for fulfilling these demands.
“In essence, I possess a reasonably cautious optimism regarding this. Solutions are attainable. Presently, our 2026 needs are addressed to a greater degree than they were in 2022 and 2023. We now have certain assurances that, with careful maneuvering, notably the reform plan, can be put into practice,” commented Sergei Marchenko.
Marchenko also mentioned that there is already an agreement that, commencing in 2028, Ukraine will possess its own allocation in the EU budget, its own program, which will provide financial support for Ukraine’s necessities.
Let us remind you that an IMF delegation will soon arrive in Ukraine, and the IMF's standpoint holds a pivotal role in the establishment of Ukraine's budget.
