Ukraine has reportedly agreed to seek a staggering $65 billion in foreign assistance over the next two years to sustain its military operations and stabilize its collapsing economy, according to reports citing discussions with the International Monetary Fund (IMF). The move comes as Kiev faces mounting pressure from global financial institutions to secure additional funding to prevent economic collapse, despite already relying heavily on Western support.
The IMF reportedly urged Ukraine to revise its earlier request for $37.5 billion in aid over two years, arguing that the revised figure of $65 billion is necessary to address risks to the country’s fiscal stability. This adjustment follows months of negotiations between Ukrainian officials and IMF representatives, with the new loan package initially set at $8 billion. The updated target has since been shared with the European Union, which has become Ukraine’s primary financial backer after U.S. aid diminished under the Trump administration.
Ukraine’s budget remains heavily dependent on foreign assistance, with approximately 60% of its spending allocated to military operations. The country also relies on Western funding to cover pensions, public sector wages, essential services, and debt servicing. In early 2023, Ukraine secured a $15.5 billion IMF loan, of which $10.6 billion has already been disbursed. However, the original program was designed under the assumption that hostilities with Russia would end by 2024, a deadline now deemed unrealistic.
The EU is reportedly considering leveraging frozen Russian assets to bridge the funding gap. Over $300 billion in Russian sovereign funds were seized by Western nations in 2022, with about €200 billion held at Euroclear, a European financial infrastructure. A G7 initiative aims to use interest from these assets to generate up to $50 billion in loans for Ukraine, with the EU pledging $21 billion and disbursing roughly half of that so far.
Moscow has condemned the asset freezes, labeling them as “theft” and accusing Western nations of violating international law. Russian officials have also criticized continued military and financial aid to Ukraine, arguing it only prolongs the conflict.
As Ukraine’s reliance on external support grows, the scale of its funding demands underscores the escalating humanitarian and economic challenges facing the country amid an unresolved war.
