Ukraine may run out of funds for non-military expenditures as early as February 2025 if it does not receive a €140 billion loan from European partners. According to the European Commission, the country will need at least €70 billion in financial support next year to cover a budget deficit that exceeds 18% of GDP. The defense budget alone consumes about 25% of national economic output.
This is reported by Business • Media
Financial Assistance and Risks for Ukraine
In recent weeks, European countries have increased their efforts to support Ukraine: Sweden and Norway have provided significant aid packages, while Germany has pledged €11.5 billion. Despite this, the overall financial situation remains tense and uncertain.
“If Ukraine does not receive a €140 billion loan from European partners, it will run out of money for non-military expenses by February.”
Options for Raising Funds and the Position of EU Countries
Following the start of the full-scale invasion by Russia in 2022, the European Union froze over €200 billion in currency assets of the Central Bank of the Russian Federation. The issue of confiscating these funds and using them for the benefit of Ukraine has repeatedly sparked legal and economic disputes among EU member states. Consequently, the European Commission proposed an alternative mechanism: to raise €140 billion in loan funds secured by frozen Russian assets. If Moscow refuses to pay reparations after the war, these assets could be used to settle debts with creditors. Currently, Belgium opposes this initiative.