1 00:00:00,040 --> 00:00:02,720 Speaker 1: We're now joined by ser Him Marchenko, who is the 2 00:00:02,800 --> 00:00:06,200 Speaker 1: Ukrainian finance minister, who joins us from Kiev today. Sir, 3 00:00:06,280 --> 00:00:08,520 Speaker 1: thank you so much for joining us on Bloomberg. And 4 00:00:08,680 --> 00:00:10,879 Speaker 1: I know it's a very busy few days for you. 5 00:00:10,920 --> 00:00:13,240 Speaker 1: There's a lot of steak for Ukraine. 6 00:00:12,960 --> 00:00:13,680 Speaker 2: In the next few days. 7 00:00:13,720 --> 00:00:15,600 Speaker 1: But I want to ask you before we get into 8 00:00:16,000 --> 00:00:20,360 Speaker 1: maybe NATO, the economy and the investment case for Ukraine. 9 00:00:20,440 --> 00:00:22,400 Speaker 1: I know that you've said we need private money, we 10 00:00:22,440 --> 00:00:25,000 Speaker 1: need investors to put money in our country. But one 11 00:00:25,040 --> 00:00:27,600 Speaker 1: of the questions that you know very well always comes 12 00:00:27,640 --> 00:00:30,680 Speaker 1: up is the idea of corruption. What measures have you taken, 13 00:00:31,080 --> 00:00:33,120 Speaker 1: but also what measures will you take? 14 00:00:35,200 --> 00:00:38,600 Speaker 3: Thank you very much, Wrilliam, it's a pleasure to talk 15 00:00:38,640 --> 00:00:44,000 Speaker 3: to you again. Of course, we try to mitigate all 16 00:00:44,200 --> 00:00:48,159 Speaker 3: possibilities of corruptions in our country. It's our choice, and 17 00:00:48,479 --> 00:00:52,199 Speaker 3: we did all necessary steps to proven that we are capable. 18 00:00:52,560 --> 00:00:56,600 Speaker 3: We can provide necessary reforms agenda in Ukraine, be capable 19 00:00:56,640 --> 00:01:01,000 Speaker 3: to increase our capacity to combat corruption in any cases. 20 00:01:01,280 --> 00:01:04,680 Speaker 3: That's why it's our choice and we will prevail and 21 00:01:04,760 --> 00:01:07,959 Speaker 3: to show all civilized wars that Ukraine is will move 22 00:01:08,000 --> 00:01:08,800 Speaker 3: in the right direction. 23 00:01:10,520 --> 00:01:13,480 Speaker 2: And sir, let's just say you're an international investor. 24 00:01:13,520 --> 00:01:16,520 Speaker 1: And I was at the reconstruction conference in London and 25 00:01:16,760 --> 00:01:19,120 Speaker 1: I saw appetite for some who said, okay, it's a 26 00:01:19,200 --> 00:01:22,120 Speaker 1: very high risk investment, but there could be high risk reward. 27 00:01:22,200 --> 00:01:23,959 Speaker 1: And obviously it's also a call of faith if you 28 00:01:24,000 --> 00:01:26,839 Speaker 1: believe Ukraine can win. But what is the investment case 29 00:01:27,120 --> 00:01:30,040 Speaker 1: that you make for capital and for money that may 30 00:01:30,080 --> 00:01:31,240 Speaker 1: be interested in your country. 31 00:01:32,840 --> 00:01:37,280 Speaker 3: Of course, first and foremost important thing we should provide 32 00:01:38,040 --> 00:01:43,200 Speaker 3: and implement necessary reforms to proven that the Ukraine capable 33 00:01:43,280 --> 00:01:47,200 Speaker 3: to protect investment in Ukraine, that Ukraine is worth investing. 34 00:01:47,680 --> 00:01:51,000 Speaker 3: But again and again, I want to retreade. But without 35 00:01:51,440 --> 00:01:55,760 Speaker 3: international support, without for US for risk insurance and sent you, 36 00:01:56,320 --> 00:02:00,760 Speaker 3: we will not attract as much investment as we needed 37 00:02:00,800 --> 00:02:06,200 Speaker 3: for reconstruction. That's why we are very welcome the incentive 38 00:02:06,280 --> 00:02:09,919 Speaker 3: from United Kingdom from other donors for World Bank to 39 00:02:11,000 --> 00:02:16,440 Speaker 3: create special facilities war is cansure trance frameworks which help 40 00:02:16,600 --> 00:02:20,600 Speaker 3: Ukraine to boost investment, which help Ukraine to protect investment 41 00:02:20,639 --> 00:02:23,600 Speaker 3: in Ukraine. We need investment right now. We don't need 42 00:02:23,639 --> 00:02:28,560 Speaker 3: to wait until war end, because otherwise we will not 43 00:02:28,919 --> 00:02:32,519 Speaker 3: receive additional boost for this victory. 44 00:02:33,720 --> 00:02:35,720 Speaker 1: And you want to maintain your economy going of course, 45 00:02:35,760 --> 00:02:38,680 Speaker 1: and you mentioned the insurance, the wartime insurance perhaps for 46 00:02:38,800 --> 00:02:41,840 Speaker 1: companies that obviously when they go into Ukraine they do take. 47 00:02:41,720 --> 00:02:43,800 Speaker 2: A big risk. How does it work in practice? 48 00:02:43,840 --> 00:02:46,560 Speaker 1: We saw that the UK Prime Minister child Sunac floated 49 00:02:46,560 --> 00:02:48,480 Speaker 1: this idea about three weeks ago. 50 00:02:48,480 --> 00:02:49,840 Speaker 2: How are you going to implement this? 51 00:02:51,880 --> 00:02:59,000 Speaker 3: We already have a mega revenge of World Bank which 52 00:02:59,280 --> 00:03:04,919 Speaker 3: created special fund for Ukraine war is insurance named it Sure. 53 00:03:05,639 --> 00:03:12,600 Speaker 3: They already collected up to a fifty million dollars in 54 00:03:12,680 --> 00:03:16,079 Speaker 3: this fund, which helps them to attract attention and attract 55 00:03:17,160 --> 00:03:22,720 Speaker 3: possible investment, attention to the way that it's possible vehicle 56 00:03:22,960 --> 00:03:27,000 Speaker 3: to use this as a tool to protect investment in Ukraine. 57 00:03:27,160 --> 00:03:31,080 Speaker 3: So investors, we are welcome in Ukraine and we be 58 00:03:31,200 --> 00:03:34,000 Speaker 3: able to protect investment in Ukraine. 59 00:03:35,560 --> 00:03:39,120 Speaker 1: Okay, Although have you had any conversations recently with companies, 60 00:03:39,160 --> 00:03:42,640 Speaker 1: have you had any international reach out about this? There's 61 00:03:42,640 --> 00:03:44,680 Speaker 1: still a lot of questions for some companies in terms 62 00:03:44,720 --> 00:03:46,000 Speaker 1: of how this actually operates. 63 00:03:46,120 --> 00:03:49,480 Speaker 2: Are you are in conversations with anyone over this, Yes. 64 00:03:49,280 --> 00:03:54,280 Speaker 3: For sure, constant conversation we have as a business for example, 65 00:03:54,320 --> 00:03:58,840 Speaker 3: we already created Business Compact which included five hundred companies 66 00:03:58,880 --> 00:04:03,560 Speaker 3: from more than countries, which in a constant way communicate 67 00:04:03,600 --> 00:04:07,440 Speaker 3: with Ukrainian governments trying to understand what is the better 68 00:04:07,480 --> 00:04:10,480 Speaker 3: way to invest, what is a better sphere for investment, 69 00:04:10,680 --> 00:04:19,800 Speaker 3: what Ukraine can provide for investment guarantees and for investment protections. 70 00:04:19,960 --> 00:04:24,000 Speaker 3: So we are trying to implement all of these steps 71 00:04:24,320 --> 00:04:29,360 Speaker 3: together with our international partners, proving that we again and 72 00:04:29,400 --> 00:04:33,280 Speaker 3: again we can manage investment climate in Ukraine in a 73 00:04:33,360 --> 00:04:33,880 Speaker 3: proper way. 74 00:04:35,480 --> 00:04:38,240 Speaker 1: And of course, now let's switch into your budget needs, 75 00:04:38,279 --> 00:04:40,560 Speaker 1: because it seems that for this year obviously you're good, 76 00:04:40,600 --> 00:04:44,000 Speaker 1: but the question becomes about twenty twenty four. Obviously you 77 00:04:44,040 --> 00:04:46,080 Speaker 1: say you hope the war will end this year, but 78 00:04:46,120 --> 00:04:48,640 Speaker 1: there's also a question mark about that. How are your 79 00:04:48,680 --> 00:04:51,159 Speaker 1: macro numbers looking like in terms of the budget needs, 80 00:04:51,160 --> 00:04:53,800 Speaker 1: but also where you see the economy going in fleetion? 81 00:04:53,920 --> 00:04:57,440 Speaker 2: Where do you see your projections now? 82 00:04:57,520 --> 00:05:02,040 Speaker 3: Situation macro situation Ukraine quite step, we managed to decrease 83 00:05:02,040 --> 00:05:06,000 Speaker 3: the level of inflation from twenty six point six to 84 00:05:06,040 --> 00:05:09,839 Speaker 3: fifteen point three. We expect that GDP growth will be 85 00:05:10,000 --> 00:05:14,960 Speaker 3: this year up to three percent. Also IMF improves a 86 00:05:15,080 --> 00:05:17,400 Speaker 3: for ACAST. They also expect it could be a growth 87 00:05:17,440 --> 00:05:22,000 Speaker 3: from one to three percent. Another good signal that our 88 00:05:22,120 --> 00:05:26,000 Speaker 3: budget running in a good way. We can collect as 89 00:05:26,320 --> 00:05:30,880 Speaker 3: much taxes as it was pre war time, so specifically 90 00:05:31,120 --> 00:05:35,360 Speaker 3: for text administration, So we try to do our homework 91 00:05:36,000 --> 00:05:41,760 Speaker 3: and also we try to attract partners incentives to help 92 00:05:41,880 --> 00:05:46,040 Speaker 3: Ukraine in a way to cover our deficit needs four 93 00:05:46,120 --> 00:05:50,919 Speaker 3: twenty twenty four. Now we have EU facility program for 94 00:05:51,040 --> 00:05:55,640 Speaker 3: Ukraine which includes fifty a billion year of program, and 95 00:05:56,000 --> 00:05:59,520 Speaker 3: we would like to see other just seven nations also 96 00:05:59,560 --> 00:06:02,600 Speaker 3: step in and help you Crain to cover a gap 97 00:06:02,600 --> 00:06:05,720 Speaker 3: for twenty twenty four specifically, and. 98 00:06:05,720 --> 00:06:06,920 Speaker 2: How big is that gap? Sir? 99 00:06:06,920 --> 00:06:09,280 Speaker 1: If I may just interrupt briefly in your numbers, if 100 00:06:09,320 --> 00:06:11,080 Speaker 1: you don't get that, what's the gap that you project 101 00:06:11,080 --> 00:06:12,200 Speaker 1: in twenty twenty four. 102 00:06:14,600 --> 00:06:18,039 Speaker 3: Due to the fact that we envisage that we still 103 00:06:18,200 --> 00:06:23,040 Speaker 3: have the same budget numbers for security and defense for 104 00:06:23,200 --> 00:06:27,760 Speaker 3: twenty twenty four, it means that our budget gap will 105 00:06:27,800 --> 00:06:30,680 Speaker 3: be no less than in twenty twenty three. 106 00:06:32,440 --> 00:06:34,120 Speaker 1: Okay, you make that clear, And of course you still 107 00:06:34,120 --> 00:06:36,520 Speaker 1: say you're still hope in some of the Russian assets, 108 00:06:36,520 --> 00:06:38,599 Speaker 1: but that's still separate conversation will be used for this. 109 00:06:38,839 --> 00:06:41,880 Speaker 1: But sir, obviously speaking of Russia, I know this is 110 00:06:41,880 --> 00:06:43,520 Speaker 1: a delicate question, but I have to ask you. 111 00:06:43,960 --> 00:06:45,919 Speaker 2: There's a Nature summit next week. 112 00:06:46,080 --> 00:06:50,520 Speaker 1: Your country is clearly expecting now a path to join NATO. 113 00:06:50,880 --> 00:06:52,280 Speaker 2: Do you think this will happen. 114 00:06:54,240 --> 00:06:58,360 Speaker 3: I am not a person who can forecast any decisions, 115 00:06:58,400 --> 00:07:01,960 Speaker 3: but I won't tell you that eighty six percent of 116 00:07:02,120 --> 00:07:06,760 Speaker 3: Ukraine citizens are eager to be part of NATA. It's 117 00:07:06,839 --> 00:07:11,680 Speaker 3: our choice. Also, President Zelenski mentioned that we expect Alience 118 00:07:12,320 --> 00:07:16,680 Speaker 3: will invite Ukraine to join. So this is my response 119 00:07:16,720 --> 00:07:20,240 Speaker 3: to you. So we're expecting some good signals from NATA. 120 00:07:21,720 --> 00:07:24,200 Speaker 2: That would come next week. Well, sir, thank you so much, 121 00:07:24,240 --> 00:07:25,080 Speaker 2: of course for your time. 122 00:07:25,120 --> 00:07:27,119 Speaker 1: And by the way, it does seem that today President 123 00:07:27,160 --> 00:07:30,600 Speaker 1: Zelenski will meet with President erder One in Turkey, and 124 00:07:30,720 --> 00:07:33,760 Speaker 1: that was y Martenko, who is Ukraine's finance minister, joining 125 00:07:33,800 --> 00:07:34,920 Speaker 1: us today on bloomber. 126 00:07:34,920 --> 00:07:35,720 Speaker 2: We'll appreciate your time.