Ukraine’s war chest is running low at the worst possible moment
With winter looming, Kyiv faces a cash crunch just as Russia ramps up its effort to crush its economy.
Ukraine's war effort faces a significant financial challenge as the conflict continues to intensify. Prime Minister Sergii Koretskyi warned that the country is facing a $27 billion defense funding gap this year, with only about $7 billion expected to be covered domestically. The remaining funds will need to be sourced from international partners.
Ukrainian President Volodymyr Zelenskyy has called for more air defenses from allies, emphasizing that every interceptor missile can save lives. As winter approaches, the need for such protection is expected to increase. The constant drone and missile attacks have caused significant damage to critical infrastructure, including railways, energy plants, ports, and factories.
The government is considering tax increases to generate domestic revenue and cover part of the defense funding gap. Without additional funds, Ukraine's ability to resist Russia would be severely compromised. Koretskyi stressed the urgent need to place advance orders for weapons and ammunition, particularly long-range drones, to strike back at Russian forces.
European allies are under pressure to contribute more funds to Ukraine, as they currently provide the bulk of the country's weapons and financial support. The European Union is paying out installments on its €90 billion loan to Ukraine, but Kyiv is urging for faster disbursement to address the immediate budget shortfall.
Written by urgent.news from Politico EU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
