Ukraine’s public debt jumps nearly 30% in 2025 on foreign wartime financing

Over the course of 2025, the debt rose by 2.061 trillion hryvnias ($47.3 billion), largely due to an increase in long-term concessional financing from international partners, the ministry said.

By the end of 2025, about 75% of Ukraine’s public and publicly guaranteed debt was external. More than half of that amount consisted of obligations to the European Union, accounting for roughly 40% of Ukraine’s total state debt.

The largest source of budget financing in 2025 was loans provided under the G7’s Extraordinary Revenue Acceleration (ERA) mechanism, totaling $37.9 billion. Part of that funding is recorded as public debt. Ukraine also received $12.1 billion in financing from the European Union during the year.

Ukraine’s liabilities under EU concessional loans increased by 1.654 trillion hryvnias ($38.6 billion) over the year, the Finance Ministry said.

The ministry noted that repayments under the Ukraine Facility loans include grace periods of 11 to 12 years and may be compensated by EU member states.

Servicing and repayment of ERA loans will be covered by sources not linked to Ukraine’s state budget, including proceeds generated from frozen Russian assets.

Earlier, the Finance Ministry reported that Ukraine’s public and publicly guaranteed debt increased by 1.46 trillion hryvnias ($20.7 billion) in 2024, primarily due to additional long-term concessional financing from international partners.

In September 2024, the ministry said Ukraine’s public debt had fallen by $9 billion following a restructuring.

According to projections by the International Monetary Fund, Ukraine’s total public debt is expected to reach 110% of gross domestic product in 2025.

As of June 30, 2025, Ukraine’s public and publicly guaranteed debt stood at 7.697 trillion hryvnias ($184.8 billion). By Sept. 30, 2025, it had risen to 8.02 trillion hryvnias ($194.2 billion).