Ukraine Faces Tightest Wartime Budget Yet

Ukraine is facing its tightest budget situation since Russia launched its full-scale invasion in 2022, Finance Minister Serhiy Marchenko told Euronews.

The country is already experiencing liquidity problems and could be forced to postpone some payments unrelated to the war unless it receives further support from its allies. Local projects, including the construction of shelters and infrastructure, could be affected, although Marchenko said external creditors would not be impacted.

Kyiv is preparing its budget on the assumption that the war will continue into 2027 and needs to cover a funding gap of about $32.6bn (€28.1bn)

Marchenko also warned of a difficult winter as Russian attacks intensify and urged European ministers to consider unconventional solutions. Ukraine is again pushing for a plan to tap about $300bn (€258.3bn) in frozen Russian assets.

EU ministers rejected an earlier version of the plan last December, but a group of countries led by Sweden revived the proposal last week. The previous plan faced strong resistance from France and Italy, as well as concerns from the European Central Bank.

(mja)