Ukraine has initiated an appeal to the European Union proposing cooperation in financing the Armed Forces of Ukraine (AFU) and facilitating the integration of the Ukrainian army into Europe’s defense structure. This was reported by the press service of the Ministry of Finance of Ukraine.
This is reported by Finway
On May 21, Finance Minister Serhiy Marchenko participated in a meeting of finance ministers and central bank governors from G7 countries, as well as representatives from the International Monetary Fund (IMF), the World Bank, the European Commission, and the Organisation for Economic Co-operation and Development (OECD) in Banff, Canada. One of the main topics of discussion was financial support for Ukraine in 2026, particularly the integration of the Ukrainian army into the European security system.
The Importance of International Support
During his speech, Marchenko expressed gratitude to the G7 countries for their stable political, financial, and defense support for Ukraine, which has been ongoing for over three years since the onset of full-scale aggression by Russia. He emphasized the need for decisive actions by international partners to enhance Ukraine’s military potential, which is fundamental to macro-financial stability in the country and security in Europe.
The minister noted that since 2021, the deficit of Ukraine’s state budget has been 3.8% of GDP. Following the start of the war, the economy contracted by nearly 30%, and the deficit increased to 20% of GDP due to a significant rise in military expenditures—from 5% to 30% of GDP. However, excluding military expenditures, the budget deficit has the potential for gradual reduction: from 6.8% of GDP in 2022 to 4.2% in 2023, 0.6% in 2024, and 0.2% in 2025.
Integration of Ukraine’s Military Potential
Marchenko also emphasized that military expenditures and equipment needs remain at the level of 2022. “Maintaining international support is crucial for sustaining macro-financial stability. We need to create a systemic solution that ensures the resilience of the economy and secures Europe from the Russian threat,” he stressed.
“Today, the Ukrainian army provides protection not only for Ukraine but for all of Europe. Even when a lasting peace is achieved, the risks to European security from Russia will persist,” the minister explained.
He also noted that the costs of maintaining the Ukrainian armed forces to ensure the security of Europe represent a small fraction of the EU’s GDP, which can be distributed among countries willing to join the initiative. The Ministry of Finance reported that Europe is actively seeking ways to strengthen defense, including through increasing the size of armies. However, building such potential will require significant effort and time. The integration of Ukraine’s military potential could become a practical solution in this situation.