Ukraine needs $37 billion in Western financial aid to keep its economy afloat in the face of the Russian invasion which has continued for almost two years, its Prime Minister Denys Chmygal said on Wednesday as the country fears the crumbling of Western support.
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The country received $42.6 billion in external financing last year, 27% of which were donations, said Mr. Chmygal, citing the EU, the United States, Japan, Canada, the United Kingdom, the IMF and the World Bank as the main economic supporters of Kyiv.
“This year’s needs total more than $37 billion. We are counting on regular, stable and timely assistance from our partners,” declared Mr. Chmygal during the first meeting of his government in 2024 taking place against a backdrop of intensification of Russian strikes in recent days.
He assured that Ukraine is simultaneously increasing its budgetary revenues while almost half of its expenditure – 43.9 billion euros, or around 22% of the national GDP – will be devoted to Defense and security, according to the law on the 2024 budget adopted by the Rada, the Ukrainian Parliament, last November.
In 2023, the Ukrainian authorities had indicated that they would need $41 billion in external financing from its allies and international organizations to keep its economy running.
New promises of Western aid to Ukraine have slowed sharply, against a backdrop of political dissension in Europe and the United States, falling to their lowest level since the start of the Russian invasion in early 2022, indicated in early December German research institute Kiel Institute.
“The outlook is uncertain (…) since the largest pending commitment – from the European Union – has not been approved and aid from the United States is declining,” details the institute, which lists the military, financial and humanitarian aid promised and delivered to Ukraine since the start of the Russian invasion on February 24, 2022.
An envelope of 50 billion euros planned to consolidate European support for Ukraine is blocked at least until the next EU summit scheduled for the beginning of February. The new American envelope is blocked at this stage in the American Congress by the reluctance of Republican elected officials.
In total, since the start of the Russian invasion, Ukraine’s allies and major international organizations (World Bank, IMF, etc.) have promised it nearly 255 billion euros in aid, including 182 billion to short term (already delivered or planned within a year).
These commitments include 141 billion euros in financial aid, nearly 16 billion in humanitarian aid and 98 billion in military aid.