Kyiv warns of emergency money printing to fund war effort
Ukraine risks exhausting its financial reserves for the war against Russia within the next two months. A convergence of geopolitical factors now threatens tens of billions of euros in critical international assistance.
Ukrainian officials told Bloomberg on condition of anonymity that Kyiv only has sufficient funds to cover essential spending until June. This warning comes as the country enters the fourth year of the full-scale Russian invasion, a conflict sustained largely by Western financial support.
Several recent setbacks have severely restricted Ukraine's fiscal room for manoeuvre. These include Hungary’s veto of a €90 billion European Union loan, alongside delays in IMF disbursements and a slowdown in NATO’s arms delivery initiatives.
National Bank of Ukraine (NBU) Governor Andriy Pyshnyi recently outlined a "worst-case scenario" to Bloomberg. Without external backing, the central bank may be forced to resume direct monetary financing of the Ministry of Finance to ensure soldiers and public sector employees receive their salaries.
The financial crunch arrives as Russia bolsters its budget with rising oil revenues, driven by escalating tensions with Iran. Furthermore, the shift in US priorities under President Donald Trump has redirected diplomatic focus away from a potential Ukrainian peace deal.
Following the White House transition last year, the United States has nearly eliminated direct financial aid. This shift has transferred the primary burden of military and economic support to European allies.
Kyiv estimates it requires approximately €13.9 billion ($15 billion) this year for US-made weaponry alone. Total external assistance requirements for 2026 are projected at roughly €48.2 billion ($52 billion).
Meanwhile, the International Monetary Fund remains concerned about Ukraine's ability to unlock its €7.5 billion ($8.1 billion) programme. Key structural reforms currently face significant delays in the Ukrainian Parliament.
Translation by Iurie Tataru
