Ukraine's Finance Ministry explores ways to extend use of one-time US$50bn fund from proceeds of frozen Russian assets

Ukraine's Finance Ministry is evaluating strategies to extend the utilisation of the US$50 billion in funding from international partners, expected by 2025, generated from the proceeds of frozen Russian assets, as this is a one-time source of income.

Source: Interfax-Ukraine news agency, citing Ukraine's Finance Minister Serhii Marchenko

Details: "There are mutually exclusive tasks: how to find funds for recovery, and how to stretch these limited funds, US$50 billion, which are a one-time action and cannot be repeated, for at least three years," he stated during the Business and War: Dialogues About the Future forum organised by The New Voice of Ukraine news outlet.

Marchenko noted that the draft state budget for 2025 includes external financing amounting to US$38.4 billion.

"We currently need US$38 billion, and a miracle won't happen in 2026 to balance everything, even if we think about it theoretically. That is why we are considering [the best way to use the US$50 billion]," the finance minister added.

Speaking at the forum, Marchenko emphasised that the US$38.4 billion included in the draft state budget for 2025 "is not something to be taken for granted" but is essential for implementing reforms. He added that although the EU has announced €35 billion for Ukraine as part of the G7's plan to use proceeds from frozen Russian assets, significant effort is still required to formalise these political commitments.

Background: In July, the European Union announced the transfer of a €1.5 billion tranche to Ukraine, sourced from proceeds of frozen Russian assets.

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