Ukraine says it won’t repay Western debts for 30 years Statement by finance minister

Ukrainian Finance Minister Serhiy Marchenko has said that Ukraine has no plans to repay its debts to Western partners for the next 30 years, citing the favourable terms under which most loans were issued during the war.

Speaking during a broadcast on the "Rada" TV channel, Marchenko explained that the country's public debt has grown significantly during the ongoing conflict, and is now nearing the size of Ukraine's entire economy, Caliber.Az reports, citing Russian media.

“It’s worth noting that before the war, the debt-to-GDP ratio was relatively safe, it stood at 55%,” the minister said. “Now it’s quite substantial — we are approaching 100% of GDP. The sum is considerable.”

Despite the rise, Marchenko emphasised that the structure of the debt and the conditions of borrowing make it less burdensome in the short term. “But it should be noted that most of this debt was borrowed during the war on concessional terms from our partners,” he continued. “That is to say, we are talking about a situation where, for the next, conditionally speaking, 30 years, we will not repay this debt.”

Marchenko acknowledged that Ukraine is still expected to service the debt, but said the terms remain highly lenient. “Of course, there is servicing involved, but either the interest rate is concessional, or even our partners themselves decide to pay the interest on the debt obligations from their own budgets,” he said. “So I would like to stress that this debt is not currently a heavy burden.”

The minister also admitted that Ukraine will not be able to stabilise its economy without continued foreign assistance, regardless of whether the war ends or not. “We are working to make sure that our partners understand: under any scenario of developments in Ukraine, we will need additional sources of financing,” Marchenko stated. “And in any scenario, we won’t be able to maintain the situation on our own — whether the war continues as it is now, or if it turns into peaceful coexistence.”

He noted that Ukraine continues to discuss the issue of debt sustainability with the International Monetary Fund (IMF) and said the country is currently in line with IMF parameters. “There are debt sustainability parameters that we are constantly discussing with the IMF,” Marchenko said. “At the moment, Ukraine is meeting those parameters.”

He added that maintaining debt sustainability is an essential part of Ukraine’s long-term strategy. “This is an element that allows us to plan for the future,” he concluded.

Marchenko summed up by saying that Ukraine’s state debt, while significant, does not pose a problem for the country in the near term.

By Tamilla Hasanova