Ukraine scrambles for money to fight war as Russian strikes batter economy
SPY•Ukraine faces its biggest budget crisis since Russia’s 2022 invasion, needing $56 billion to cover this year’s gap as strikes weaken economic activity and tax revenue. The government says $29.5 billion in foreign aid is at risk because of delayed reforms.
1. Budget pressure deepens
Russian strikes have damaged factories, warehouses, ports and railways, slowing economic growth and tax revenue. In Kryvyi Rih, ArcelorMittal’s mining and steelmaking complex suspended operations last month after missile strikes, and the city has frozen non-essential spending.
2. War costs rise
Ukraine needs $56 billion to fund this year’s budget gap, including $27 billion in military spending. Fighting now costs about $190 million a day, up from $140 million two years ago; in the first nine months of this year, defence spending exceeded $44 billion while tax revenue was about $42 billion. Russian attacks caused more than 49.5 billion hryvnias ($1.1 billion) in lost tax revenue over that period, the budget committee chair said.
3. Foreign aid at risk
Prime Minister Sergii Koretskyi said $29.5 billion in foreign aid is at risk because reforms have not passed. Ukraine is seeking to bring forward payments under a €90-billion EU loan, while the government has proposed $110 billion in defence spending next year and estimates an unfunded budget gap of more than $32 billion.
