IMF: Ukraine faces $54 billion funding gap by 2029

The International Monetary Fund (IMF) has warned that Ukraine could face a funding gap worth $54 billion by 2029, according to a report from Bloomberg on September 29. This gap is expected to grow from an estimated $30 billion to $35 billion in 2027, narrowing slightly to $17 billion in 2028 before increasing to $2 billion in 2029.

Ukraine's donors convened in Brussels on September 29 to expedite discussions on additional aid. The European Union had pledged a EUR90 billion ($105 billion) loan earlier this year and is urging its partners to meet their commitments for this year and the next. The European Commission and the IMF have also been pushing Ukraine to implement its reform plan to unlock more international aid and enhance the oversight of the funds received.

A European Commission spokesperson confirmed that EU Economy Commissioner Valdis Dombrovskis will meet with Ukrainian Finance Minister Serhii Marchenko to discuss the necessary reforms for the upcoming EU budget support allocation to Kyiv. Some EU member states are still debating how to contribute additional funding to Ukraine, as the conflict is anticipated to persist into the following year. Russian and Ukrainian forces have been intensifying their attacks on infrastructure recently, prolonging the war's duration.

On September 1, Ukrainian Prime Minister Serhiy Kozytskyy announced that the government had implemented strict spending controls on budget funds not earmarked for defense. On September 4, Finance Minister Marchenko stated that Ukraine had never experienced such a challenging budget situation since Russia initiated its full-scale invasion in 2022. On September 14, Kozytskyy warned that delays in passing the necessary legislation could jeopardize $29.5 billion in international aid.