Ukraine hopes US will follow EU in offering multi-year financial aid package

Ukraine’s finance minister Sergii Marchenko hopes for the United States to follow the European Union in offering multi-year financial commitments, he told the Financial Times.

Last month, Ursula von der Leyen, the European commission’s president, said the EU was preparing a four-year assistance package for Ukraine totalling EUR 50 billion in the form of grants, soft loans, and guarantees.

The next day, UK prime minister Rishi Sunak announced a three-year financial aid package for Ukraine, including USD 3 billion in guarantees for World Bank loans.

It was a “good signal for all other G7 nations that the EU has already stepped in”, Mr Marchenko told the Financial Times.

He commended the EU package for its size and flexibility, for the fact that it was a medium-term commitment and because it provided cash as an incentive for specific reforms.

“As finance minister I understand it’s good to do reforms but it’s better to do reforms with some incentives.”

Noting it was US leadership that allowed Ukraine to survive this war, Ukraine’s finance minister said it is “natural” the US role in terms of assistance should be on a par with the EU’s.

On 30 June, Ukraine receives the last USD 1.2 billion grant funded by United States through the World Bank's trust fund.

The US's current aid package is valid until the end of the summer, when its fiscal year ends.

US treasury secretary Janet Yellen, however, earlier said she was confident Congress would support further financial support for Ukraine.