Ukraine seeks U.S. long-term financial aid

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KYIV (Reuters) – Ukraine is seeking long-term financial assistance from the United States, the Ukrainian finance ministry said on Thursday, ahead of the September maturity of $1 billion of 5-year Eurobonds, which had been placed under U.S. guarantees.

Ukraine’s Finance Minister Serhiy Marchenko discussed the possibility with Deputy Treasury Secretary Wally Adeyemo in Washington.

“The issues of reforms in Ukraine, cooperation with international financial organizations, changes in the Tax Code of Ukraine, the possibility of providing long-term state funding from the United States, as well as the need to accelerate Ukraine’s accession to NATO were discussed,” the ministry said in a statement following the meeting on Wednesday.

The U.S. guarantees helped Ukraine borrow at the lowest rate for the country yields – about 1.84% in 2014-2015 and 1.47% in 2016 despite the economic crisis caused by the Russian annexation of the Crimean peninsula and the military conflict with Russia-backed separatists.

Ukraine’s latest Eurobond, worth $1.25 billion, was placed for eight years with a coupon rate at 6.876% in April 2021.

Ukrainian President Volodymyr Zelenskiy is due to visit Washington in late July.