Ukraine needs additional $12-15 billion from partners in 2025 'because the war will continue,' finance minister says.

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Ukraine will likely need an additional £12-15 billion in foreign financial support next year as the war is unlikely to end in 2025, Finance Minister Serhii Marchenko said in an interview with RBC Ukraine published on July 30. Foreign aid is crucial for Ukraine as the economic pressure caused by the full-scale Russian invasion mounts. "Now we are constantly discussing with our partners that we need additional financial assurance because the war will continue in 2025, and we need to have a buffer," the minister said.

According to Marchenko, the current pledges from partners will not be sufficient. The figure of £12-15 billion corresponds to discussions between Ukraine's Finance Ministry and the International Monetary Fund (IMF), he added. "They (IMF) also potentially see this as an additional need beyond what is currently provided for in the program," he added.

The IMF has allocated £15.6 billion in financial support to Ukraine under the Extended Fund Facility (EFF) program, which is to be disbursed in regular installments until 2027. Ukraine received the latest tranche of £2.2 billion in early July. Under the IMF's program, Kyiv also received political commitments from its partners of £122 billion by 2027.

The besieged country received £42.5 billion in external financing from various donors last year, allowing it to function amid the ongoing war. The IMF said Ukraine will need roughly the same sum to support its budget this year. Ukraine is also searching for new revenue sources at home.

"We are showing that we are ready for the most difficult decisions and that we are making our own contribution," Marchenko told RBC Ukraine, reminding that the government is pushing forward a tax hike.

Ukraine Business Roundup -- Ukrainian startups attract funding The following is the July 4, 2024 edition of our Ukraine Business Roundup weekly newsletter. This version is condensed as the author was out of the office.

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