by Federico Fubini
Finance Minister of Kyiv, Marchenko: «We need a total embargo on gas and oil, or at least Europe sets a price cap. Ukraine needs 5 billion a month: the reserves confiscated from Moscow and its oligarchs. Help us export our wheat”
Sergii Marchenko, 41, never imagined being the man at the center of the G7, G20 and International Monetary Fund summits. Instead, it happened in Washington last week. As finance minister, he has a vital task for Ukraine: raising the billions for the country to survive and explaining to European governments how to weaken Russia by attacking oil and gas.
Minister, how did things go in Washington?
“We agreed on what we need: five billion dollars a month over the next three or four months. It is the funding necessary only for humanitarian and civil needs, not for military purposes ».
Do you think the western allies are able to meet your needs?
“It’s more complicated here. We are striving for joint action by the G7 countries, the IMF and the World Bank. It would be better to have direct non-refundable transfers. clear. But loans are also an option, we are looking for ways to cover our deficit. Italy was the first country to support us with a donation of 110 million euros after the start of the war. Last week I met Minister Daniele Franco in Washington and he told me that your government is discussing giving us another 200 million in loans ».
Do you have an estimate of the cost of the devastation caused by Russia?
“It could be hundreds of billions of dollars. But now I think we can invite a team from the World Bank. Let them do a reliable calculation ».
Should this damage be compensated by seizing and using hundreds of billions of euros and dollars from the reserves of the Central Bank of Russia, which are now frozen?
“I agree, the question is how to implement this idea. My Canadian colleague Chrystia Freeland has moved very quickly on this. His government wants to take the power to sell confiscated Russian assets and give the proceeds to war victims. They will confiscate the Canadian dollar reserves of the Central Bank of Russia and make them available to Ukraine. I think other countries should do the same. The United States and then also the United Kingdom ».
And the countries of the European Union, where there are Russian reserves of around 150 billion?
«I hope for joint action by the European Union: at the G7 we discussed how frozen Russian assets can be used for Ukraine. Also those of the oligarchs under sanctions, we think”.
Do you think the Europeans are open about it?
“I don’t know if it’s legally possible, the lawyers are investigating the matter. It may need a political decision, a law, although I’m a bit skeptical about the bureaucracy. Ursula von der Leyen, Charles Michel and Valdis Dombrovskis are helping us, but we need real leadership in Europe. A person who drives, answers questions, organizes the work».
Do you feel disappointed in Germany?
(smiles) «I had a lot of good conversations with my colleague Christian Lindner, who is very good friends with the Ukraine. Your government has just released us the first tranche of a €150 million loan agreed over two years ago. We just got the money. We expected no less from Berlin than we get from London or Washington.”
That is, could Germany do more?
“Yep. It’s the largest economy in Europe, one of the largest in the world, but it offers a tenth of the support we get from others. Italy, France, Canada, the Netherlands, Japan and even small countries like Lithuania have provided funds Germany pledged another 150 million two months ago, so far there has not been a payment. However, I see them more supportively now than in the first month of the war ».
What do you ask of Europe regarding Russia’s oil and gas?
“The total embargo is our top priority. If this is not possible or if it takes a long time to get there, price caps for gas or oil could be set. Or duties. Maybe even on all imports from Russia, and the funds raised could go to the reconstruction of Ukraine. Every day Russia receives a billion dollars worth of oil and gas from Europe. And every day the war costs Ukraine 400 million in expenses and losses. It needs to be rebalanced ».
How long do you think Russia can go without oil and gas revenues?
“He’s accumulated enough reserves in his sovereign wealth fund and may have other assets as well. Even without oil and gas, the Russians can hold out for a while. At the moment, despite the sanctions, I am in a very comfortable state ».
But do you think that because of the ruble question, Putin could really decide to turn off the gas in Europe?
“It’s technically impossible. I also don’t see that he can achieve anything if they do: I really don’t see why he should.
Minister, is agricultural production going on in Ukraine despite the war?
“Ukraine provides food to around 400 million people around the world, and some populations are now extremely vulnerable, for example in Egypt. Russia’s aggression may trigger an international food crisis. Now we have almost ten million cereals that are at risk of rotting in our warehouses because Russia continues to blockade the port of Odessa.”
But will there be a harvest this year?
“Yes, more than 80% of the arable land is seeded. We can manage to produce again this year, business is not standing still».
How do you intend to export wheat?
“We are working on new routes. Partly overland, through Central Europe, partly on the Danube. With the help of the G20, we could use ships from neutral countries to transport grain from Odessa. But we must hurry to find solutions ».
April 28, 2022 (Modification April 28, 2022 | 08:28)
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