Media reports West sharing financial assistance to Ukraine

(MENAFN) Recent analysis by the Russian newspaper Vedomosti has revealed a significant decrease in Western financial aid to Ukraine, with funding nearly halving compared to the previous year. According to data from Kiev’s Finance Ministry, between January and June of this year, the United States and its allies contributed only 27 percent to Ukraine's state budget expenditures, a sharp drop from 50 percent during the first half of 2023. In monetary terms, this translates to a reduction in financial support from USD19.1 billion to USD10.6 billion.

Looking ahead, Ukrainian authorities are aiming to secure USD37 billion in external loans for 2024 to cover their budget, yet they have only managed to acquire a quarter of this target in the first half of the year. The situation is further complicated by an increasing financial burden on the Ukrainian budget, as the costs associated with servicing existing debt have escalated dramatically—from USD900,000 last year to USD5.2 billion this year. This debt service alone surpasses total spending on critical sectors such as education, healthcare, and economic support.

Experts consulted by Vedomosti have expressed skepticism about Ukraine's ability to avoid a default, suggesting that merely postponing payment deadlines or restructuring debt may only provide a temporary reprieve. They contend that Ukraine is effectively insolvent and will struggle to repay its foreign loans. In a recent development, the Ukrainian government approved its draft budget for 2025, which anticipates a staggering deficit of 75 percent.

International financial aid remains a cornerstone of Ukrainian President Vladimir Zelensky's so-called "victory plan," according to a report in the Sunday Times. As the country grapples with a rapidly changing financial landscape, the ongoing decline in Western support poses critical challenges for Ukraine’s fiscal stability and long-term recovery.

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