Ukraine has managed to narrow its funding deficit for war spending by about $7 billion, but still faces a shortfall of about $20 billion.
Ukrainian Prime Minister Serhii Koretskyi said the initial $27 billion gap has been reduced through austerity measures and the redistribution of funds. The cuts will affect sectors such as road repairs and cultural projects, while the salaries of the armed forces will be protected.
“The main factor is whether this leads to survival or not. This is the criterion for making decisions,” Koretskyi said.
The Ukrainian government is holding talks with the European Commission, the International Monetary Fund and other international partners to find ways to cover the deficit, which also affects the Defense Ministry’s budget and could delay weapons supplies.
The situation has become even more urgent after the recent escalation of the war with Russia. According to the prime minister, the annual costs of the war are estimated at around $155 billion.
Meanwhile, the European Union has scheduled a new meeting of the Donors’ Platform for Ukraine, which is expected to bring together allied countries and financial institutions. The meeting aims to discuss ways to fill Kiev’s financial gap.