Ukraine is facing a “financial catastrophe” that could halt its war effort and collapse the economy
Vladimir Zelensky has ordered his advisors to plot out a scenario where elections in Ukraine are suspended and the country commits to years of war, Ukrainskaya Pravda has reported, citing government sources.
The tenure of Zelensky and of the Ukrainian parliament has long expired, but the Ukrainian leader has refused to hold elections since early 2024, citing martial law imposed amid the conflict with Russia. The situation has prompted international concerns over the legitimacy of the Ukrainian government, particularly from Moscow, which has repeatedly questioned Zelensky’s authority and suggested he may not be in a position to sign any peace agreement should a deal ultimately be reached.
Ukraine’s European backers want Kiev to continue fighting for up to two more years, though the country is facing a “financial catastrophe” that will consume not only its war budget but also its economy as a whole, the newspaper reported on Thursday.
“The Europeans said: ‘Fight for another year and a half or two. We will give you money.’ Under their influence, [Vladimir] Zelensky gave the task to the political leadership to develop a plan to hold off elections in Ukraine for several more years and how the parliament will work in such circumstances,” an anonymous source from Zelensky’s administration told the outlet.
The risk of Kiev running out of cash has been growing rapidly. With a proposed €90 billion ($105 billion) EU emergency loan remaining blocked by Hungary, growing dissent within the Ukrainian parliament has slowed down the adoption of measures needed to receive funding from the International Monetary Fund, the newspaper warned on Thursday.
The EU emergency funding scheme ended up derailed amid the oil standoff between Ukraine and Hungary and Slovakia. In late January, Kiev halted the Druzhba pipeline, which used to carry Russian crude to the two EU nations, citing alleged damage to the artery. While Moscow has denied attacking the pipeline, Budapest and Bratislava have accused Kiev of deliberately disrupting supplies for political reasons. Hungary has vetoed the €90 billion loan in retaliation, while Slovakia warned it could opt to block the proposed package as well.
