Archive · 5 Oct 2026
Ukraine seeks funds as Russian strikes deepen budget crisis
Ukraine needs a lot of money to keep fighting the war and running the country.
Russian attacks have damaged businesses, transport routes and ports, making it harder for the government to collect taxes and for companies to earn money.
In Kryvyi Rih, a major steel and mining complex has stopped working after missile strikes.
At the same time, the cost of fighting has risen.
Ukraine says it needs $56 billion to fill this year’s budget gap.
Some money from foreign partners may be delayed because lawmakers have not yet passed required reforms.
The government is trying to get some European loan payments sooner.
But people involved in the talks say that could leave Ukraine with more financial pressure next year.
Russian strikes have halted operations at ArcelorMittal’s steel and mining complex in Kryvyi Rih, adding to economic pressure on the city.
Ukraine needs $56 billion to cover this year’s budget gap, including $27 billion for military spending.
In the first nine months of the year, Ukraine spent more than $44 billion on defence and collected about $42 billion in tax revenue.
Ukraine says $29.5 billion in foreign aid is at risk because required reforms and legislation have been delayed.
The government is seeking to bring forward payments from a €90-billion EU loan, while sources warn this could increase pressure on next year’s budget.
- Who
- Ukraine’s government, businesses and residents, including those in Kryvyi Rih.
- What
- Ukraine is facing a major budget shortfall as Russian attacks weaken economic activity and war costs rise.
- When
- The report was published October 5; it discusses this year’s budget and plans for next year.
- Where
- Ukraine, including Kryvyi Rih and Black Sea ports; Ukrainian officials also held talks in Brussels.
- Why
- Russian strikes have damaged industry and disrupted trade, while military spending rises and some foreign funding is delayed pending reforms.
Accelerate funding
Manage future budget pressure
Bringing forward EU loan payments
Accelerate funding
Ukraine and the European Commission said they had identified funds to close this year’s budget gap, and Ukrainian officials are seeking earlier loan disbursements.
Manage future budget pressure
Three sources familiar with the talks said advancing payments could increase budget pressure next year, when election campaigns in European countries could also weaken support for Ukraine.
- This year’s budget gap
- Ukraine says it needs $56 billion, including $27 billion for military spending.
- Defence spending
- More than $44 billion was spent on defence in the first nine months of the year.
- Tax revenue
- The government raised about $42 billion in tax revenue during the first nine months.
- Aid at risk
- Prime Minister Sergii Koretskyi said $29.5 billion in foreign aid is at risk because of delayed reforms.
- EU loan
- Ukraine and European partners discussed advancing disbursements from a €90-billion loan.
- Next year’s defence budget
- The government has proposed $110 billion in defence spending, excluding direct military aid.
- Steel complex
- ArcelorMittal’s mining and steelmaking complex in Kryvyi Rih suspended operations after Russian missile strikes.