2024-01-03 18:48:36
Ukraine asks its partners for $37 billion to keep its economy afloat
Ukraine needs $37 billion in aid to keep its economy afloat despite the Russian offensive, Prime Minister Denys Chmyhal estimated on Wednesday, while kyiv fears the erosion of Western support.
Last year, the country received $42.6 billion in external financing, including 27% in donations, from its main partners, he said, citing the European Union, the United States , Japan, Canada, the United Kingdom, the International Monetary Fund (IMF) and the World Bank.
“This year’s needs total more than $37 billion. We count on regular, stable and timely support from our partners”underlined Mr. Chmyhal during the first council of ministers of the year, which coincides with a sharp intensification of Russian bombings.
At the same time, Ukraine is counting on an increase in its budgetary revenues while almost half of its expenditure (43.9 billion euros, or around 22% of its GDP) will be devoted to defense and security, according to the law on the 2024 budget adopted by the Rada, the Ukrainian Parliament, in November.
In 2023, the Ukrainian authorities estimated their external aid needs at $41 billion. Western aid pledges have fallen to their lowest level since the start of the Russian offensive in early 2022, against a backdrop of political dissension in Europe and the United States, according to data published in early December by the Kiel Institute for the World Economy – a German organization which records pledges of military support to Ukraine.
“The outlook is uncertain (…) as the largest pending commitment – from the European Union – has not been approved and US aid is declining”he wrote.
An envelope of 50 billion euros envisaged to consolidate European support will not be released before the next EU summit, scheduled for early February. That of the United States comes up against the reluctance of Republican parliamentarians.
Since the start of the Russian invasion, Ukraine’s allies and international organizations (World Bank, IMF, etc.) have promised it nearly 255 billion euros in aid, of which 182 have been paid or must be paid. during this year.
These commitments include 141 billion euros in financial aid, nearly 16 billion in humanitarian aid and 98 billion in military aid.
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