Declared financial aid to Ukraine reaches $30 billion

International partners have already provided Ukraine with $7.4 billion to cover the state budget deficit

Since the beginning of Russia’s war against Ukraine, international partners have transferred $7.4 billion to Ukraine to cover the state budget deficit, and the total amount of declared financial aid to Ukraine as of mid-June was $30 billion. Up to a third of them are non-refundable grants, National Bank of Ukraine noted in its June report on the financial stability.

According to the NBU, about two-thirds of the expected international assistance is soft loans from partner countries and international financial organizations. Although they are provided for a long time and at low interest rates, such loans carry currency risks in the future, according to the National Bank.

“According to the Institute of World Economy (Kiel, Germany), as of early May, the total amount of weapons and military goods provided and agreed to be sent to Ukraine was about $30 billion,” the National Bank wrote.

National Bank also notes that Ukraine continues to maintain its public debt on time, and the National Bank estimates that the amount of payments on it in the coming year is moderate. In the third quarter of this year, foreign currency payments of the government and the NBU are estimated at more than $3.1 billion, in the fourth quarter – more than $2.1 billion, in the first quarter of 2023 – $2.25 billion, the second – almost $1.5 billion, in the third – about $3.3 billion, and in the fourth quarter of 2023 – $1.5 billion.

Earlier the European Commission approved the Plan of Reconstruction of Ukraine. In the coming days, the European Union will finally determine the details of the financial package for Ukraine for €9 billion, the allocation of which was discussed earlier.

Also, GMK Center reported that the G7 member states want to initiate financial support to Ukraine of almost €30 billion by the end of the year. At the same time, they agreed to strengthen sanctions against Russia and, thus, Russia’s economic and political isolation, as well as to continue supplying arms to Ukraine.