Delays in US aid contributed to Ukraine's $43.5 billion budget deficit, minister says
Delays in U.S. military aid have contributed to Ukraine's soaring budget deficit this year, Ukrainian Finance Minister Serhiy Marchenko said in an Aug. 11 interview with the Financial Times.
Other government officials have estimated the deficit at just under a quarter of gross domestic product (GDP), or $43.5 billion.
The minister's acknowledgement of the difficult situation with military spending comes as Russian troops steadily advance across the Donbas front line. Ukrainian soldiers on the ground say they are critically lacking manpower, ammunition, and military equipment, making the defense of Ukrainian-held cities more difficult than ever.
Marchenko said that the disbursement of U.S. military aid has been "slow," more than three months after Congress approved $27 billion worth of direct military aid for Ukraine. This included $13.8 billion for Ukraine to buy advanced weapons and another $13.8 billion to purchase U.S. defense systems.
Marchenko elaborated that the Western military aid delays forced Ukraine to spend more money at the beginning of 2024 on purchasing necessary ammunition and weapons, leaving less for the end of the year.
"(The situation meant that Ukraine) will have a lack of money to cover salaries for our troops,” Marchenko said in the interview.
Marchenko called on Western allies to accelerate the disbursement of a $50 billion loan to finance military spending.
Group of Seven (G7) leaders on June 13 confirmed an agreement on a plan to provide Ukraine with a $50 billion loan by the end of the year. The loan should be repaid using interest from some $300 billion in frozen Russian assets.
The agreement was reached after President Volodymyr Zelensky called on G7 leaders at the June summit to back the $50-billion loan but also urged the creation of a mechanism for the full confiscation of $300 billion in frozen Russian funds.
