In 2024, Ukraine plans to cover the state budget deficit in the amount of approximately $40 billion, mainly at the expense of financial assistance from international partners. The deputy head of the Office of the President, Rostislav Shurma, expressed this plan during a discussion held at the Ukrainian House in Davos.
According to Shurma, it is possible to cover this deficit at the expense of revenues from the frozen assets of the Russian Federation. He expressed confidence that both bailout packages from the United States and the European Union would be approved, and added that the deficit issue would be resolved in 2024. However, he noted that even with a significant recovery of the economy and an increase in domestic revenues, Ukraine will continue to need annual financial assistance in the amount of $10-15 billion.
According to Shurma, this amount roughly corresponds to the income from frozen Russian assets, taking into account the market rates for Treasury obligations or bonds of issuers with a rating of "AAA", which are currently 4-5% per annum.
As for the issue of providing these funds, Shurma noted that it would be easier to resolve this legally than the confiscation of Russian assets. He also expressed his support for the European Commission's proposal to use revenues from frozen Russian assets to restore Ukraine. The proposal still needs to be approved by the European Council, but all EU member states plan to support the proposed plan.
According to the calculations of the European Commission, such revenues could be up to 3 billion euros annually or up to 15 billion euros in the period from 2023 to 2027, depending on interest rates during this period.
