G1PS supports an international campaign to cancel Ukraine’s foreign debt

Solidarity with Ukraine? Let’s write off public debt!


5/12/20223 min read

Solidarity with Ukraine? Let’s write off public debt!
The Ukrainian people have revolted against the imperialist loot and continue to fight in a heroic war for their dignity and sovereignty. Now that Ukrainian civil society groups are asking for the country’s debt to be canceled, we must show that our solidarity is not just a slogan. Under the strict conditions of international creditors, Ukraine had to sacrifice the lion’s share of its budget after the Russian aggression in 2014 in order to pay off its debts. This country must now be relieved of this burden – it is more important than ever. In the face of Russian invasion, the country must supply armaments and food supplies to the army and territorial defense units. Resources are needed to protect the civilian population, provide housing for refugees and medicines for the injured. The money that Ukraine spends trying to cover its debt would benefit it here and now. Let’s cancel Ukraine’s debt!

Let us stop forcing Ukraine to pay its wrecking debt
Even before the Russian invasion, Ukraine was one of the poorest and most indebted countries in Europe. The decades in which corrupt governments acted in disregard to the people have weakened Ukraine’s economy and made it dependent on international loans. Russia’s aggression in 2014 only exacerbated the problem. After the economic restructuring of 2015, the debt burden of Ukraine has become unbearable. Every year, Ukraine has to spend about 10 – 15% of GDP to cover its debts. After giving so much money Ukraine can no longer develop its economy, it loses the money that is needed to save the state. Now that Ukraine must defend itself against Russian imperialism, the demand to repay debts becomes even more painful. Ukraine needs your support. Let’s cancel Ukraine’s debt!

An investment for the future
Bombardment and the targeted destruction of economic potential are costing Ukraine a great deal. According to the Prime Minister of Ukraine Denys Shmyhal, the losses in infrastructure and production have already reached 560 billion USD. We can be sure that Ukraine will need huge financial resources if it wants to recover from the war. If we want to help Ukraine, debt relief must be the first step. The current debt will be an obstacle to recovery, spending a large part of economic aid to cover it, and blocking the development of large-scale investment. By freeing Ukraine from this burden, we can create opportunities to invest in the needs of society and social spending, as well as opportunities to use the capital we need more freely. Ukraine must not be left to pay off its current debt and must not be condemned to new loans with equally strict repayment terms. Let’s cancel Ukraine’s debt!

The cost of debt must be borne by the European Central Bank
At the end of 2021, Ukraine’s external debt amounted to 130 billion USD. This is less than 1% of the annual GDP of the European Union. It would not cost us much to take over the debt settlement costs or to write them off altogether. At the same time, for Ukraine, it would guarantee big changes for the better. If we write off the harmful and unjust external debt of Ukraine, we will be able to help its society, which is fighting for its very existence. It will be an investment in Ukraine’s future – its reconstruction. This will free her from the clutches of the belt-tightening associated with the loans. There is no doubt about it. Let’s cancel public debt!

Let’s stop Putin
We have no doubt that Putin-led Russia has illegally attacked a sovereign state without any provocation. We are categorically opposed to a system in which a stronger force imposes its will on a weaker one – that is how we should view Moscow’s actions. Therefore, we must do everything we can to support Ukraine’s struggle against the imperialist aggressor. Ukraine’s debt write-off is an effective way to support its fight against Putin. The money Ukraine spends to cover its debt can be used to strengthen its defense capabilities. They can cover the supply of armaments and food supplies to the army and territorial defense units. These financial resources can also be used to protect the civilian population, provide housing for the homeless and provide medicines for the injured. We must stop Putin. Let’s cancel Ukraine’s debt!