Ukraine is asking its partners for $37 billion to keep its economy afloat
Ukraine needs $37 billion in aid to keep its economy afloat despite the Russian offensive, Prime Minister Denys Chmyhal estimated on Wednesday, as Kiev fears an erosion of Western support.
Last year, the country received $42.6 billion in external financing, 27% of which came in the form of donations, from its main partners, he said, citing the European Union, the United States, Japan, Canada, the United Kingdom and the International Monetary Fund (IMF). and the World Bank.
“This year’s needs are more than $37 billion. We count on regular, stable and timely assistance from our partners,” Chmyhal stressed during the first ministerial council of the year, which coincides with a sharp intensification of Russian bombing campaigns.
At the same time, Ukraine expects its budget revenues to increase, while almost half of its spending (43.9 billion euros, or around 22% of its GDP) will be spent on defense and security, according to the law on the 2024 budget passed in November by the Rada, Ukraine's parliament , assumed.
In 2023, Ukrainian authorities estimated their need for external assistance at $41 billion. Western aid pledges have fallen to their lowest level since the start of the Russian offensive in early 2022 amid political disagreements in Europe and the United States, according to the Kiel Institute for the World Economy, a German organization that tracks pledges of military support for Ukraine.
“The outlook is uncertain (…) as the largest outstanding commitment – the European Union – has not been approved and US aid is declining,” he wrote.
An amount of 50 billion euros earmarked to consolidate European support will not be released before the next EU summit, scheduled for early February. That of the United States is met with reluctance from Republican parliamentarians.
Since the beginning of the Russian invasion, Ukraine's allies and international organizations (World Bank, IMF, etc.) have pledged almost 255 billion euros in aid to Ukraine, of which 182 have been paid this year or are yet to be paid.
These commitments include 141 billion euros in financial aid, almost 16 billion euros in humanitarian aid and 98 billion euros in military aid.