Latest news with #SerhiiMarchenko
Reuters
3 days ago
- Business
- Reuters
Ukraine to default on payment to GDP warrant holders
LONDON/KYIV, May 30 (Reuters) - Ukraine's finance ministry said on Friday it would not be paying more than half a billion dollars due to holders of its GDP warrants, marking the first payment default since it created the instruments. The war-ravaged country said it owes $665 million on June 2 to holders of the $3.2 billion worth of warrants, based on 2023 economic performance. Last year, Ukraine's parliament approved a payment moratorium on the GDP-linked securities from May 31. "Ukraine remains committed to implementing a comprehensive, fair and equitable restructuring of the GDP-linked Securities," it said in a statement, adding it must comply with debt targets outlined in its IMF programme and in line with the comparability of treatment with official lenders. Ukraine created the instruments - fixed income securities indexed to economic growth - to sweeten its 2015 debt restructuring. But their complex structure meant they had not been part of last year's broader $20 billion restructuring. Ukraine's economy cratered after Russia's full-scale invasion in 2022, falling close to 30%. And while its economy staged modest growth in 2023 and 2024, its gross domestic product remains below the pre-war level. Finance Minister Serhii Marchenko described the warrants, with a payout linked to growth, as "designed for a world that no longer exists".
Yahoo
22-05-2025
- Business
- Yahoo
Ukraine proposes to EU to co-finance its armed forces: finance minister explains
Ukraine has proposed that its Western partners contribute to funding the Ukrainian Armed Forces and integrate them into Europe's collective defence system. Source: Ukraine's Finance Minister Serhii Marchenko, following his trip to Canada for a meeting of the G7 finance ministers Details: Marchenko stated that the key topic raised with partners was how to cover Ukraine's financial needs in 2026. He confirmed that Ukraine is currently in talks about integrating its military capabilities into Europe's defence system. He said such a move would have several strategic benefits for Ukraine, particularly helping maintain financial stability in 2026 and beyond, and for the EU – protecting it from potential Russian aggression, since Ukraine's military has extensive relevant experience. Quote: "The cost of supporting Ukraine's Armed Forces for Europe's security would amount to a small share of the EU's GDP," Marchenko noted. More details: The minister added that this share of GDP could be distributed among countries willing to join the initiative and counted towards their defence spending obligations under NATO. Quote: "Given the military risks, Europe is already exploring ways to strengthen its defence, including by increasing the number of military personnel. But building such capacity would take years and considerable resources. Integrating Ukraine's Armed Forces is an effective solution with economic advantages for partner countries." Support Ukrainska Pravda on Patreon!
Yahoo
15-05-2025
- Business
- Yahoo
Ukraine Reforms Tracker Weekly — Issue 25
Editor's note: This is issue 25 of Ukrainian lawmaker Yaroslav Zhelezniak's weekly "Ukraine Reforms Tracker" covering events from May 5–May 11, 2025. The digest highlights steps taken in the Ukrainian parliament related to business, economics, and international financial programs. The Kyiv Independent is republishing with permission. Ukraine misses customs reform deadline, jeopardizing IMF commitments Ukraine's government has failed to launch the reboot of the State Customs Service, risking a key International Monetary Fund structural benchmark and putting up to $1.3 billion in international aid at risk. Despite a legal requirement to form a selection commission for the new head of customs by Jan. 1, the Finance Ministry has not acted. According to MP Yaroslav Zhelezniak, the delay is being orchestrated by Finance Minister Serhii Marchenko and the Government Committee led by Economy Minister Yuliia Svyrydenko, reportedly under direct instructions from the President's Office to block the reform. The continued inaction not only violates Ukrainian law but undermines commitments to the IMF, U.S., and World Bank, who have already disbursed funding tied to the reform. The IMF deadline for appointing a new customs chief by end-June 2025 is now considered unrealistic, raising the risk of future funding being withheld. G7 backs ARMA reform bill, but parliament fails to add it to agenda again The G7 ambassadors have voiced support for draft law #12374-d, aimed at overhauling Ukraine's Asset Recovery and Management Agency (ARMA). The bill was developed under the leadership of MP Anastasiia Radina and is required under the EU's Ukraine Facility program. Despite international backing, the bill was not included in this week's parliamentary agenda. Ukraine already missed the March 31 deadline for passage, putting 300 million euros in EU funding at risk. Moreover, ARMA publicly questioned the bill, claiming international partners had raised concerns — an assertion at odds with the G7's public endorsement. Ukraine ratifies U.S. critical minerals agreement, advances supporting legislation On May 12, Ukrainian President Volodymyr Zelensky signed the ratification of the critical minerals agreement between Ukraine and the United States, following unanimous support from all parliamentary factions. Last week, parliament also passed in the first reading draft law #13256, which introduces amendments to the Budget Code to implement the agreement's provisions. Read also: Ukraine, US sign additional agreements for minerals deal, Economy Ministry says We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Reuters
14-05-2025
- Business
- Reuters
Ukraine finance minister says country strong despite 'financial gap'
LONDON, May 14 (Reuters) - Ukrainian Finance Minister Serhii Marchenko said there is a "financial gap" in the country's budget for next year, but that Ukraine is stronger than it was a year ago and capable of continuing to defend itself. Marchenko also said the minerals deal recently signed with the United States could help Washington better understand Ukraine. "We made very good progress to strengthen our relationship," he said, referring to the United States when speaking during a panel discussion at the annual meeting of the European Bank for Reconstruction and Development in London. "I hope it definitely can bring investment in Ukraine." Ukraine has had a tempestuous relationship with U.S. President Donald Trump, who had promised to broker a quick end to the war with Russia after he took office in January. Peace talks are scheduled to take place in Turkey on Thursday, but it is unclear whether Trump, Russian President Vladimir Putin or Ukrainian President Volodymyr Zelenskiy will attend. Marchenko said Ukrainian officials had worked to cooperate with U.S. officials to exhibit their "eagerness and respect for the United States." "It is in our interest to find all possible means - I want to stress all possible means - and to be on the same side with the United States in a way, how to help us to resolve this war," he said.
Reuters
24-04-2025
- Business
- Reuters
Ukraine's Marchenko says progress on critical minerals deal with US, no deal this week
WASHINGTON, April 24 (Reuters) - Ukrainian Finance Minister Serhii Marchenko said on Thursday that Kyiv and Washington have made progress on the minerals deal, but no agreement would be finalized this week. The two sides signed a memorandum a week ago as an initial step towards clinching an agreement on developing mineral resources in Ukraine, a deal promoted by U.S. President Donald Trump that has proven elusive. 'There was progress and now our teams are working very closely together,' he said after an event hosted by the Ukrainian embassy. "There are still some questions which we are discussing,' he said, without providing any details.
