The financial hole in Ukraine's budget is linked to reduced U.S. support and the lack of prospects for a swift ceasefire with Russia that Europe had hoped for, the Financial Times reported.
Ukraine's external financing needs to cover the country's budgetary deficit are fully met for 2025, Prime Minister Denys Shmyhal said on May 6.
Since Russia began its full-scale invasion more than three years ago, the demands on social services have multiplied. Millions are internally displaced, the number of people with disabilities has risen by 10%, and more than 13,000 children have been orphaned. Populations who were already vulnerable are often hit harder
The auction, which is for a 100% stake in the plant, will be held on Feb. 4. Its starting price is Hr 234.4 million ($5.6 million), which includes debts for the last six months.
This comes a month after President Volodymyr Zelensky signed off on a major tax increase bill on Nov. 28 in a bid to plug Ukraine’s budget deficit.
For the next year, Ukraine allocated 26.3% of its gross domestic product (GDP) to defense and security expenditures, including Hr 740 billion ($17.7 billion) for arms purchases and Hr 50 billion ($1.2 billion) on the production and purchase of drones.
In April of this year, Kyiv and Seoul signed an agreement enabling Ukraine to attract up to $2.1 billion in concessional loans over 2024-2029.
The bill, which was passed by the Ukrainian parliament on Oct. 10, will raise taxes by Hr 8 billion ($192 million) in 2024 and Hr 141 billion ($3.4 billion) in 2025, lawmaker Yaroslav Zhelezniak said, as the country struggles to shore up its budget deficit amid Russia's ongoing full-scale war.
The state expects to get Hr 2 trillion ($48.2 billion) in revenues, while expenditures are planned at Hr 3.6 trillion ($86.8 billion).
Some Hr 54.55 billion ($1.3 billion) will be directly allocated for the development and implementation of new technologies, and the expansion of defense production capacity, according to Strategic Industries Minister Herman Smetanin.
“The priority of next year's budget will also be security and defense. All taxes paid by people and businesses will go toward strengthening our defenders and military capabilities,” Prime Minister Denys Smyhal said on his Telegram channel.
At a time when state coffers are starving for money to fund Ukraine’s survival, illegal smuggling is costing the country billions of dollars a year in lost tax payments. Through bribery or lying, smugglers avoid an estimated $2.4 to $3 billion in customs payments each year as they
The law aims to finance "urgent measures in the field of security and defense to counter the large-scale armed aggression of the Russian Federation against Ukraine," according to an explanatory note on the Ukrainian parliament's website.
Ukraine’s parliament voted to approve a tax hike for the first time since the full-scale war broke out, turning to a politically unpopular move as the country continually struggles to find new sources of funding for its growing wartime budget. The bill passed in parliament as part of a
Ukraine's parliament, the Verkhovna Rada, voted on Sept. 18 in support of increasing the state budget by Hr 500 billion ($12 billion) to spend on defense and military needs.
The IMF team led by Gavin Gray held week-long negotiations with the Ukrainian authorities in Kyiv on the fifth review of the country's 4-year Extended Fund Facility (EFF) program. The EFF is a four-year funding agreement that will allow Ukraine to access $15.6 billion in financial aid in regular installments.
Ukraine's budget deficit for 2025 will be $35 billion, but assistance from partners will cover roughly $20 billion, PM Denys Shmyhal said on Aug. 27.
"The intensity of hostilities and the risks of a prolonged war, as well as the systematic growth of security and defense sector expenditures, are the key factors that influence the growth of financial needs," Deputy Finance Minister Olha Zykova said.
The German Foreign Ministry refuted claims that Berlin will not provide Kyiv with assistance next year, Suspilne media outlet reported on Aug. 18.
By November, Ukraine will receive $7.9 billion in direct support to the state budget, part of the $61 billion aid package passed by the U.S. Congress in April, Ukraine's ambassador to the U.S., Oksana Markarova, said on air on July 26.
"Financing the needs of Ukrainian forces is now a top priority. Additional funds for weapons, fortifications, and salaries for servicemen are a critical component of countering the military aggression of the Russian Federation against Ukraine," Deputy Defense Minister Yurii Dzhyhyr said.
There is a gap in Ukraine's state budget of $5 billion needed for military expenditures, Finance Minister Serhii Marchenko told in an interview with Hromadske Radio on May 22.
Prime Minister Denys Shmyhal announced during a government meeting that Ukraine has received approximately $12 billion in external financing since the beginning of the year to help address the budget deficit.
Ukraine's $40 billion defense budget for this year includes $6 billion for arms procurement, Strategic Industries Minister Oleksandr Kamyshin told journalists on April 14, Interfax-Ukraine reported.
Ukraine will receive more than $9 billion in financial aid in March, Prime Minister Denys Shmyhal said.
The Ukrainian government needs eight taxpayers per soldier to ensure the state budget has enough funding for the military, Denys Shmyhal said during a press conference on March 4.
War-torn Ukraine relies on its foreign partners to face massive expenditures in the coming year, Ukrainian Prime Minister Denys Shmyhal said at a briefing on Sept. 14, detailing the 2023 budget bill. According to the bill, Ukraine plans to spend $61.4 billion in 2023. Government revenue for the next
After Ukraine ended 2021 with a historically high gross domestic product (GDP) of $195 billion, top officials issued optimistic forecasts for the coming year. Then the war began, killing all of the country's economic plans. As of late April, the Russian military has destroyed 30% of Ukraine’s infrastructure, causing
Editor’s Note: This is the 61st issue of Ukrainian State-Owned Enterprises Weekly covering events from Jan. 15 to Jan. 22, 2022. The Kyiv Independent is reposting it with permission. Corporate governance in SOEs State Food and Grain Corporation on the brink of bankruptcy. Lawmaker Maryan Zablotskyy, from the ruling
On Dec. 10, President Volodymyr Zelensky signed into law the annual state budget for 2022. A 4% spending increase coupled with a deficit cut necessitated by IMF conditions meant that the government had to find nearly $8 billion of extra revenue, creating several new taxes and hiking up existing ones,
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