The Ukrainian Cabinet is working at an accelerated pace to meet financial obligations by October 15, which is crucial for securing essential funding. However, the finalization of this funding hinges on the approval of necessary laws by the Verkhovna Rada.
Prime Minister Korytsky emphasized the need for immediate legislative action, stating, “We must pass everything—resolutions and laws. Only then will we secure all the funds. This is critically important and must be done as soon as possible.”
He acknowledged that Ukraine’s partners have their own approval processes for disbursing funds, which require time that Ukraine cannot afford. Budget expenditures are strictly tied to timelines, necessitating timely income to meet monthly salary obligations.
The Cabinet is urging the Verkhovna Rada to designate October 12 as a session day to vote on the bills necessary for these funds.
“We have provided lawmakers with specific deadlines. For each required decision, there is a date by which the law must be voted on and signed to ensure we receive the needed funds in time,” the Prime Minister stated.
- On September 10, Finance Minister Serhiy Marchenko warned that Ukraine is facing a budget crisis due to a funding shortfall, indicating that the Ministry will postpone less critical expenditures and prioritize funding for security and defense. He noted that such a liquidity situation had not been seen since 2022.
- The budget currently lacks $27 billion for the country’s defense. On August 30, Defense Minister Yevhen Hmara mentioned that one potential solution to cover the deficit could be part of a EU loan allocated for 2027, alongside recruiting new countries for assistance. The New York Times reported that Ukraine’s request for additional funds surprised European officials.
- The EU seeks to precisely determine Ukraine’s budgetary needs and reasons for the deficit before deciding how to address it, as stated by European Commissioner for Economy Valdis Dombrovskis in early September.
- However, some planned international funding has yet to arrive in Ukraine, partly due to Ukraine’s failure to meet certain obligations to partners, as highlighted by Korytsky on September 28. The government plans to cover around $7 billion of the deficit through strict fiscal austerity measures.
