Kiev may need $10-20 billion more than previously planned to sustain the conflict with Russia, the agency has reportedly said
Ukraine faces a growing funding gap that could require billions more in outside support to finance its conflict with Russia, Bloomberg has reported, citing sources from the International Monetary Fund.
Ukraine, which spends around 60% of its budget on the conflict, relies heavily on Western assistance to cover pensions, public wages, essential services, debt, and humanitarian needs. It obtained a $15.5 billion loan from the IMF in early 2023 to cover some of the expenses and has already received around $10.6 billion, but the financing program was based on the assumption that the conflict would end this year and expires in 2027.
Kiev requested a new funding plan earlier this week, estimating that it will need up to $37.5 billion over the next two years if the conflict continues. But according to the Bloomberg report on Thursday, the IMF believes Ukraine may need $10-20 billion more than this, raising the total to $57.5 billion.
IMF spokeswoman Julie Kozack confirmed on Thursday that the agency has begun talks with Kiev on a new support program, but did not acknowledge the reported shortfall. Sources told Bloomberg that Kiev and the IMF are expected to settle on a figure for the new loan next week. Ukraine’s cabinet and Finance Ministry declined to comment on the report.
Ukraine has struggled to secure new aid from its main backers. US contributions have dwindled since President Donald Trump’s return to office, leaving the EU as the biggest donor. One method pursued by the West has been to use profits from the $300 billion in frozen Russian assets abroad. Last year, the G7 backed a $50 billion loan plan to be repaid from these earnings.
Some Western countries have called for the full confiscation of Russian assets, while others warn of legal risks. Nevertheless, the profits have already been tapped, with the EU, which pledged $21 billion under the program, disbursing roughly half of the amount so far this year.
Russia has warned that financial and military aid to Ukraine only prolongs the conflict and has denounced the use of frozen assets as “robbery” which violates international law and erodes trust in the Western financial system.
