Ukraine Finance Minister warns of severe budget shortages

Ukraine's Finance Minister Sergii Marchenko has warned that the country faces its tightest budget situation since the start of the full-scale invasion in 2022. Due to escalating Russian attacks and the prioritization of military spending and weapons procurement, Marchenko stated that Ukraine may be forced to cut non-military spending and postpone certain payments due to liquidity shortages.

Marchenko noted that while external creditors will not be affected, the impact will likely be felt at the local level, specifically regarding the construction of essential infrastructure and shelters needed to prepare for a difficult winter. He is currently preparing a new budget based on the assumption that the conflict will continue through 2027, estimating a funding shortfall of approximately $32.6 billion. The International Monetary Fund (IMF) has reportedly provided similar figures following a recent visit to Kyiv.