Ukrainians Invest Over $25 Billion in Military Bonds Following Russia’s Invasion

Sergii Marchenko, Minister of Finance of Ukraine, stated that Ukrainians have invested 1 trillion hryvnias ($25.1 billion) in Ukraine’s military government bonds since the start of the full-scale invasion. Thus making a significant contribution to the support of the country’s financial stability during the war.

Military domestic bonds are government securities placed exclusively on the domestic stock market. They constitute Ukraine’s obligations to reimburse bearers of these bonds for their nominal value, along with income payment, in accordance with the terms of bond placement.

“Thanks to the funds raised from domestic government bonds, we were able to finance more than 200 days of our security and defense, which is equivalent to 15% of Ukraine’s GDP in 2023. Investments in government bonds have become the second largest source of financing for the State Budget after international aid,” said Minister of Finance of Ukraine Sergii Marchenko.

Funds raised by investors played and continue to play an important role in strengthening the country’s financial stability challenged by war. Now the Ukrainian government is able to provide resistance to the invasion, using two main internal sources: taxes and domestic bonds.

Marchenko reported that the demand for bonds is growing dynamically. Since the beginning of the full-scale invasion, the volume of investments of individuals has increased by more than 2.4 times, crossing the mark of ₴60 billion ($150 million), and of legal entities by 2 times, amounting to more than ₴160 billion ($4 billion).

In 2016, investments of individuals in bonds amounted to only ₴100 million ($2.5 million). Today, this amount has increased by about 600 times.

Funds raised through the issuance of military bonds are used to cover Ukraine’s social and defense financial needs.

Convenient digital solutions for purchasing bonds, market yields that exceed inflation expectations, and a 100% guarantee of repayment from the state make government bonds the most attractive investment instrument on the market.