Ukraine’s war chest is running low at the worst possible moment

Prime Minister Sergii Koretskyi warned journalists this week that Ukraine faces a $27 billion defense funding gap this year, with Kyiv hoping to cover about $7 billion domestically and looking to partners for the rest. Some EU financing remains tied to reforms Kyiv must pass to unlock the money, while other allies have yet to fill the remaining gap.

«Of course, raising taxes is never ideal, but in wartime, we cannot afford the luxury of populism or pretend we can avoid asking anything of the public,» Oleksandra Myronenko, an economist with the Center for Economic Strategy think tank, told POLITICO.

Next year looks even more fraught.

Ukrainian Finance Minister Serhii Marchenko told donors in Brussels this week that Ukraine would require $52.6 billion in aid in 2027, while about $32.6 billion remains unfunded.

«Ukraine has no reserve funds to cover its entire spending. If we fail to get external financing, we’re facing a strong cut of all non-priority expenditures — and could even extend to protected expenditures,» said Myronenko, the economist.

«If we don’t have the actual cash in our accounts, we won’t have the means to pay military salaries, pensions, and so on. So, if there is no international aid, then everything will be very bad,» she added.

Source: POLITICO.