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Kyiv currently uses what money it can raise domestically to run its own arms industry, pay its soldiers and other security personnel, and protect pensioners and the internally displaced. Western loans and grants cover outlays on the procurement and maintenance of foreign arms, as well as essentialsocial osts, such as salaries for public servants, and medical and educational workers.The government is planning for $37 billion in financial aid this year that would all-but cover a budget deficit estimated at $39 billion.

Western backers have provided some $73.6 billion in financial aid since Russia invaded in February 2022, according tocalculationsfrom the Center for Economic Strategy in Kyiv. Through the International Monetary Fund, they expect to provide a total of $122 billion between 2023-2027.

But the flow of Western money has slowed to a trickle in recent months, as conflict in the Middle East, the onset of election year in the U.S. and a grinding economic slowdown have all pushed the biggest war in Europe in 80 years down the news agenda. So far this month, Ukraine has received no official financial aid at all.

Hungarian Prime Minister Viktor Orban and SlovakiasRobert Ficohavebothresistedproviding any more aid to Ukraine from the EU budget,arguingthat the funding should be divided into four tranches, eachblockableat any time.Orban in particular is now facing increasedpressureto drop his resistance.

In the U.S., meanwhile,financial aid to Ukraine has become a hostage in thefight betweenRepublicans and Democratsover border policy. Despite President Joe Bidenssupport, House of RepresentativesSpeaker Mike Johnsonhasdemandedthat the White House explain its end goal in Ukraine before votingon new aid to Kyiv.

And while the fights in Washington and Brussels play out,Kyivisholdingits breathinsilence, hoping not tohurtits chancesof getting crucial support.

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Ukraine hopes to avoid economic doomsday of not getting Western financial aid - POLITICO Europe

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