Finance minister Marchenko: Frozen Russian assets can be used as reparations for Ukraine
"Of course, we count on frozen Russian assets as part of reparations," Minister of Finance of Ukraine Serhiy Marchenko said in Washington on Wednesday, an Ukrinform correspondent reports.
He also noted that the proceeds for the reconstruction of Ukraine’s destroyed infrastructure could be provided through additional financial measures against Russia. "These issues are being discussed," Marchenko said.
Asked by Ukrinform what sums for the post-war reconstruction we’re talking about, he said: "It's hundreds of billions of dollars."
At the same time, the minister noted that the Ukrainian government delegation, which arrived in the United States this week during the Spring Meetings of the IMF and the World Bank, is focused on consolidating international support for Ukraine. According to him, currently, the focus is on meeting urgent needs, organizing all kinds of assistance to Ukraine, including financial. This is necessary primarily for the uninterrupted managing budget payments and pensions, functioning of hospitals, etc.
"The urgent need for us is to raise funds so that people do not feel that the war is going on," the minister said. However, according to him, the priority now is to gain victory, which, first of all, requires financing the army needs.
To this end, Marchenko said, intensive work is being carried out with international partners and financial institutions. He called the role of the IMF and the World Bank "extremely important".
"It is an instrument of trust. Many countries trust these institutions and believe that if these institutions have created a mechanism to support Ukraine, they also can join it," the minister explained.
He noted that funds from foreign partners are raised on various terms, but the priority is to receive grants. In addition, according to him, Ukraine wants to get part of the special drawing rights that countries received in 2021 after the COVID-19 pandemic and did not use. For the Ukrainian side, loans on preferential terms are also currently acceptable, in particular, for a period of 15 years at 1%.
The minister stressed that certain tools were currently being provided for that. For example, the IMF created a special administrative account to raise grants and contributions from other countries. The World Bank also set up a trust fund. In addition, according to Marchenko, such interaction takes place with individual countries on a bilateral basis.
Another tool for raising funds is the issuance of war bonds in Ukraine.
"By the way, I urge Ukrainians to buy them. This is the tool that helps us survive in these difficult conditions and make all the necessary payments," the finance minister concluded.
This week, the delegation of the Government of Ukraine led by the Prime Minister makes a visit to Washington to hold meetings with the IMF, the World Bank, and the U.S. administration to attract more financial support for Ukraine.
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