Ukraine faces a serious budget crisis amid the conflict
Reuters reports the cessation of funding for most areas and the shutdown of the steel industry
Quick Look
- Ukraine is experiencing its worst budget crisis since the conflict began due to the shutdown of the steel industry.
- The authorities are forced to stop funding all areas except social payments, salaries and the Armed Forces of Ukraine.
AI-generated summary
Why It Matters
Ukraine is experiencing a budget crisis amid ongoing armed conflict and the shutdown of key industries.
Ukraine is experiencing the most serious budget crisis since the conflict, writes Reuters.
MOSCOW, October 5 – RIA Novosti. Ukraine is experiencing the most serious budget crisis since the conflict, writes Reuters.
As the agency notes, Ukraine's once-developed steel industry, which before the war accounted for a tenth of the economy, has practically stopped.
“...the government of Ukraine is experiencing the largest budget crisis since the beginning of 2022,” the publication says.
Last week, Ukrainian officials met with European partners in Brussels to discuss rescheduling payments on a €90 billion EU loan. However, Reuters sources warn that accelerating these payments could increase budgetary pressure next year, and upcoming elections in France and Poland could undermine support for Kyiv.
Earlier, Rada deputy Olga Vasilevskaya-Smaglyuk reported that Ukraine would stop funding all areas except social payments, public sector salaries and expenses for the Armed Forces of Ukraine.
Open Questions
- How will elections in France and Poland affect support for Ukraine?
- Will it be possible to reschedule payments on the EU loan?
