Ukraine launches Plan B due to delayed funding from Western allies.

Finance Minister Serhii Marchenko noted that the ministry is confident of receiving Western aid in 2024 but not in January and February. The EU will consider financial assistance for Ukraine on February 1, and the US Congress – approximately in January. Marchenko believes that this delay can be “painlessly” overcome.

“We already have a Plan B mechanism in place. We will bring the resources as close as possible to January-February. This involves an advance payment of dividends and an increase in borrowing, among other measures. The situation is not critical, there is just an understanding that we will need to rely on internal resources as much as possible,” he said.

According to Marchenko, the main risk for public finances in 2024 will be the need to increase spending on the war. At the same time, the minister believes that 2025 will be more difficult than 2024.

“First of all, electoral cycles shift the emphasis from Ukraine to other problems, including internal ones. But there is hope that we can replace certain sources with others,” Marchenko added.