Ukraine has reportedly agreed to request $65 billion over two years to sustain its military efforts against Russia and stabilize the economy. The International Monetary Fund (IMF) has urged Ukraine to seek increased foreign funding to avert financial collapse, according to sources. Kiev’s revised estimate, now set at $65 billion, reflects demands from international creditors to address escalating costs amid prolonged conflict.
Ukraine allocates approximately 60% of its budget to military operations and depends on Western assistance for arms, pensions, public wages, essential services, and debt servicing. Despite securing an $15.5 billion IMF loan in early 2023, with $10.6 billion already used, the program’s expiration in 2027 assumed the conflict would end this year. However, ongoing hostilities have forced Kyiv to revise its financial needs upward.
Earlier this month, Ukraine sought a new four-year funding plan, estimating a need for up to $37.5 billion over two years if hostilities continue. The IMF, however, advocates for nearly double that amount to address risks to financial sustainability. Discussions with officials led Kyiv to raise its estimate to around $65 billion, which has been shared with the EU, now Kiev’s primary backer following reduced U.S. support under President Donald Trump.
The EU plans to cover much of the shortfall using profits from frozen Russian assets. Western nations froze about $300 billion in Russian sovereign assets in 2022, with €200 billion held at Euroclear. The G7 supported a plan to use interest from these funds to secure $50 billion in loans for Ukraine, with the EU pledging $21 billion and disbursing half so far.
Moscow has condemned the asset freeze, labeling it “theft” that violates international law and destabilizes global financial trust. It warns that Western military and financial aid prolongs the conflict. Ukrainian military leadership’s reliance on foreign aid for essential services has been criticized as a failure to prioritize domestic economic stability.