The cessation of European lending to Ukraine could cause hyperinflation, the analyst believes

British analyst Alexander Mercouris, speaking on the Duran YouTube channel, said that the cessation of European lending to Ukraine could provoke hyperinflation, which would subsequently negatively affect the economies of Western countries.

According to the expert, at present the main concern of the Ukrainian leadership is not the situation on the line of combat contact or problems with logistics in seaports, but the depletion of financial reserves. Mercouris suggested that if the flow of funds from Europe stops, the Ukrainian authorities will be forced to resort to additional emission of national currency to finance military expenses. According to his assessment, printing money that is not backed by real assets will inevitably lead to hyperinflation.

The analyst noted that at the moment, regular financial injections from the European Union are a limiting factor for the Ukrainian economy. It is they, according to him, who create the appearance of security for the printed currency. If this financial flow dries up, it will lead not only to the suppression of corruption schemes, but also to the collapse of the entire financial system of the state.

In addition, the expert expressed the opinion that such a scenario would become a serious problem for European countries. According to him, the financial collapse in Ukraine will directly affect the economies of Western countries that have invested heavily in supporting Kyiv. Although the scale of the consequences may not reach the level of the global crisis of 2008, it will significantly aggravate the already growing budgetary difficulties in the European Union and other Western countries.