Ukraine Struggles from Military Funding Shortages

(MENAFN) Ukraine is facing a financial strain in sustaining its conflict with Russia and might be forced to adjust this year’s budget to boost defense spending, the head of the country’s budget committee has cautioned.

Kiev allocates roughly 60% of its budget to the war effort and relies heavily on Western assistance to fund military operations, as well as pensions, salaries, public services, debt obligations, and humanitarian programs.

Current spending is supported by a $15.5 billion IMF loan secured in 2023 and a G7 initiative linked to revenues from frozen Russian assets.

In a Facebook post on Tuesday, Budget Committee chair Roksolana Pidlasa revealed that Kiev still requires $8.7 billion from Western backers to fulfill the $39.3 billion in external financing needed for Ukraine’s 2025 budget.

She warned that this deficit could expand by year-end, potentially jeopardizing the army’s operational capacity.

“There’s a possibility of new changes to the 2025 budget in the fall to increase spending on the national security and defense sector,” Pidlasa acknowledged, without providing specific figures.

She emphasized that any amendments would first require Kiev to secure an agreement with the EU regarding the use of its portion of the G7 loans for military purposes.

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