Under martial law, Ukraine is achieving improvements in key debt indicators despite the objectively inevitable growth in the volume of public debt, driven by substantially increased state budget needs for security and defense.
As of December 31, 2025, the total state and state-guaranteed debt of Ukraine amounted to UAH 9,042.7 billion (USD 213.3 billion), which is 29.5% higher (28.4% in USD equivalent) than at the end of 2024.
Throughout 2025, the volume of state and state-guaranteed debt increased by UAH 2.061 trillion (USD 47.3 billion), primarily due to an increase in long-term concessional financing from international partners.
G7 ERA Loans: The largest source of state budget financing in 2025 was the Extraordinary Revenue Acceleration (ERA) loans from G7 countries, totaling USD 37.9 billion. These are partially accounted for as public debt.
European Union: Financing in the amount of USD 12.1 billion. During the year, Ukraine's debt under EU concessional loans increased by UAH 1,654 trillion (USD 38.6 billion). Repayment Terms: Repayments for Ukraine Facility loans have a grace period of 11–12 years and may be compensated by EU member states. Servicing and repayment of ERA loans will be conducted using sources unrelated to the state budget—specifically, income from frozen Russian assets—ensuring no additional debt burden for Ukraine.
As of the end of 2025, approximately 75% of Ukraine's state and state-guaranteed debt is external. Over half of this external debt consists of obligations to the EU (approx. 40% of total public debt), provided on exceptionally concessional terms.
- Commercial External Debt: Reduced to less than 10%.
- Domestic Debt: Accounts for approximately 22% of the portfolio.
- State-Guaranteed Debt: Accounts for about 3%, a share that has consistently declined over the last four years.
Ukraine has significantly improved its debt maturity and cost structure:
- Weighted Average Maturity: Increased from 6.3 years in 2021 to 13.37 years in 2025 (a 2.1-fold increase). External debt maturity rose from 6.3 to 15.75 years, significantly reducing refinancing risks.
- Weighted Average Cost: Decreased from 7.2% in 2021 to 4.55% in 2025. The cost of external debt dropped from 4.5% to 1.9% due to the higher share of concessional financing.
66% of Ukraine’s total debt consists of concessional loans from International Financial Institutions (IFIs) and foreign governments. 22% are domestic government bonds (OVDP), while 10% are Eurobonds and loans from commercial banks/financial institutions.
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2%: Other debt.
By Currency:
- Euro: 45%
- USD: 23%
- UAH: 21%
- SDR: 8%
- Other (GBP, CAD, JPY): 3%
In December 2025, Ukraine restructured its state derivatives (GDP warrants) by exchanging them for a new issue of Eurobonds. This operation allowed Ukraine to completely eliminate instruments that posed a significant risk to fiscal sustainability. The Ministry of Finance estimates that without this restructuring, payments on GDP warrants between 2025 and 2041 could have reached USD 6 to 20 billion, depending on economic growth rates.
According to preliminary calculations, Ukraine’s debt-to-GDP ratio in 2025 stands at 98.4%.
