Ukrainian Delegation in US Discusses New IMF Program, Economic Agenda

The IMF program, reconstruction funding, energy cooperation, and the use of frozen Russian assets were among the topics discussed between Ukrainian, US, and G7 officials and global company executives during the Ukrainian delegation’s US visit this week.

Authorities are exploring alternative financing to meet urgent economic and reconstruction needs as Ukraine’s war economy faces another year of uncertainty, with no clear path to reducing the budget deficit as fighting continues and ceasefire talks stall.

Ukrainian officials met with Ben Black, head of the US International Development Finance Corporation, to advance the US-Ukraine Reconstruction Investment Fund and outline steps to reduce investor risks, Ukraineʼs Minister of Economy, Environment and Agriculture Oleksiy Sobolev reported on his Facebook.

In May, the US and Ukraine signed a mineral deal regarding subsoil development, the sale of minerals, and US assistance. Ukraine will transfer a portion of mineral extraction to the US-Ukraine Reconstruction Investment Fund. Both sides have already made a first $150 million investment.

The fund is developing initial projects in mining, energy and logistics, with plans to expand into defense and digital infrastructure.

The Ukrainian delegation also continued discussions with the International Monetary Fund (IMF) on the 2026-2029 cooperation program. Ukraine is seeking a second IMF loan since the financing aimed for the end of hostilities is no longer relevant, as Moscow’s full-scale invasion is soon to enter its fourth year.

The size of a new IMF loan has not been formally discussed, but early estimates put it at about $8 billion, Bloomberg previously wrote.

“Defense, economic and energy stability are among the top priorities for the coming year, so we must anticipate spending on them,” Sobolev wrote.

Ukrainian officials also met with global company leaders at the US-Ukraine Partnership Forum to discuss attracting private investment, supporting key sectors and safeguarding investors.

Companies included Bayer, Bechtel, Baker Hughes, Cargill, Citi, J.P. Morgan, ADM, Bank of America, GE Vernova, Carlyle, Corteva, Chemours, Jacobs, and McLarty Associates, Ukraine’s Ministry of Economy, Environment and Agriculture said in a press release.

Ukrainian officials also met US Energy Secretary Chris Wright to plan long-term energy cooperation, covering Ukraine’s oil, gas, uranium, and nuclear projects.

The delegation also had meetings with G7 finance ministers centered on economic, energy, and financial stability.

Officials urged using frozen Russian assets for reconstruction and reparations and called on the EU to launch the Reparations Loan mechanism, the press release says.

The EU is now considering a new plan to provide loans to Ukraine using Russia’s frozen central bank assets, referred to as “reparation loans.”

Under the proposal, Russia would keep its legal claim on the funds, which would be converted into bonds. Ukraine would receive loans that might not need repayment if Russia fails to cover war damages, according to sources cited by Bloomberg.

Previously, Finance Minister Serhiy Marchenko told Ukraine’s lawmakers that for 2026, the identified need for external financing currently amounts to $18.1 billion, based on an estimated average US dollar annual exchange rate of Hr. 45.7.

The estimate differs from the central bank’s figure of an “unidentified” gap of $12.7 billion for Ukraine’s needs in 2026. Ukraine’s central bank does not publish its forecast on the exchange rate.

Ukraine spends around 60% of its budget on the war effort against Russia and depends heavily on Western allies to cover pensions, public sector wages, and humanitarian programs.

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