Ukraine April central budget revenue doubles on confiscated USD 1.1 bln

Ukraine’s central budget revenue surged 99% yoy in April on the back of USD 1.1 bln that was confiscated from the entourage of former President Viktor Yanukovych, as well as USD 10 bln in National Bank dividends wired to the budget, the Interfax-Ukraine news agency reported on May 3, citing a provisional report of the State Treasury of Ukraine. For 4M17, central budget revenue grew 51% yoy.

Previously, the National Security and Defense Council of Ukraine reported on the confiscation of USD 1.5 bln belonging to Yanukovych and his close aides.  Part of the funds (USD 1.1 bln allegedly in cash) was allocated to the budget while the rest (which was in state bonds) was used to reduce state debt.

Alexander Paraschiy: Doubled budget revenue is positive, but we still do not understand the nature of the confiscated funds. In particular, we did not observe these funds on the unified Treasury account as of end-April. The State Treasury reported UAH 31.1 bln in cash residuals as of May 1, which is about the same level as it had been for the last three months. With the extra USD 1.1 bln transferred to coffers, we would expect residuals to be twice as large. Very likely these proceeds are accounted for in some way separately but we don’t have enough info for the moment. The big question now is how the confiscated funds will be reflected in gross intertnational reserves.