Latest news with #SergeyMarchenko
Russia Today
5 days ago
- Business
- Russia Today
Ukraine has gone over budget for its military
Ukraine does not have enough money to fund its military and will have to overhaul this year's budget in order to close the gap, Finance Minister Sergey Marchenko has admitted. The shortfall stems from changes in the amount of Western aid and the evolving situation on the battlefield, he added. Addressing legislators on Thursday, Marchenko said, as cited by Ukrainian lawmaker Yaroslav Zhelezniak, that the 'funding for the Armed Forces is currently not sufficient due to many factors, so we will proceed with a budget revision in the near future.' Marchenko said the reasons included changes in military technology, adjustments in arms deliveries from Kiev's suppliers, and heightened battlefield activity. He also acknowledged that the government had failed to anticipate the conditions Ukraine would face in 2025 when it was drafting the budget late last year. 'You cannot forecast this situation linearly. Sometimes the situation requires rather complex, asymmetric decisions,' the minister explained. In mid-May, Zhelezniak estimated the military budget shortfall at 200 billion hryvnia ($4.8 billion), but later raised his assessment to between 400 and 500 billion hryvnia ($9.6-12 billion). In April, Ukrainian outlet Ekonomicheskaya Pravda reported that funds originally allocated for military salaries in the final months of 2025 had already been spent to purchase drones, ammunition, and other weapons. Ukraine already had to contend with a budget deficit in 2023 and 2024, but managed to bridge the gap by raising taxes. According to Zhelezniak, however, this time such measures won't be required as the government intends to cover the gap through increased domestic borrowing and higher-than-expected tax revenues. Kiev continues to rely heavily on Western aid and loans – which officials say Ukraine won't be able to repay in the next 30 years – to compensate for the economic slump caused by the conflict. As of February 2025, European nations have provided Ukraine with $138 billion of assistance of various types, while the US has given $115 billion. In 2023, Russian President Vladimir Putin said that Ukraine would not be able not survive for more than 'a week' if its Western military and financial aid dried up.
Russia Today
6 days ago
- Business
- Russia Today
Ukraine lacks money for military
Ukraine does not have enough money to fund its military and will have to overhaul this year's budget in order to close the gap, Finance Minister Sergey Marchenko has admitted. The shortfall stems from changes in the amount of Western aid and the evolving situation on the battlefield, he added. Addressing legislators on Thursday, Marchenko said, as cited by Ukrainian lawmaker Yaroslav Zhelezniak, that the 'funding for the Armed Forces is currently not sufficient due to many factors, so we will proceed with a budget revision in the near future.' Marchenko said the reasons included changes in military technology, adjustments in arms deliveries from Kiev's suppliers, and heightened battlefield activity. He also acknowledged that the government had failed to anticipate the conditions Ukraine would face in 2025 when it was drafting the budget late last year. 'You cannot forecast this situation linearly. Sometimes the situation requires rather complex, asymmetric decisions,' the minister explained. In mid-May, Zhelezniak estimated the military budget shortfall at 200 billion hryvnia ($4.8 billion), but later raised his assessment to between 400 and 500 billion hryvnia ($9.6-12 billion). In April, Ukrainian outlet Ekonomicheskaya Pravda reported that funds originally allocated for military salaries in the final months of 2025 had already been spent to purchase drones, ammunition, and other weapons. Ukraine already had to contend with a budget deficit in 2023 and 2024, but managed to bridge the gap by raising taxes. According to Zhelezniak, however, this time such measures won't be required as the government intends to cover the gap through increased domestic borrowing and higher-than-expected tax revenues. Kiev continues to rely heavily on Western aid and loans – which officials say Ukraine won't be able to repay in the next 30 years – to compensate for the economic slump caused by the conflict. As of February 2025, European nations have provided Ukraine with $138 billion of assistance of various types, while the US has given $115 billion. In 2023, Russian President Vladimir Putin said that Ukraine would not be able not survive for more than 'a week' if its Western military and financial aid dried up.
Russia Today
22-05-2025
- Business
- Russia Today
Ukraine wants fixed percentage of EU's GDP
Ukraine has proposed that EU member states allocate a fixed portion of their GDP to fund the country's armed forces. The bloc's leaders have pledged continued military support for Kiev despite a policy change by US President Donald Trump, who aims to mediate a truce. Finance Minister Sergey Marchenko outlined the proposal during this week's G7 finance ministers meeting in Canada, according to a Facebook post published on Thursday. 'What we are proposing is partner participation in funding Ukraine's Armed Forces, which would effectively integrate them into Europe's defense structure,' he wrote. Marchenko added that the cost 'would represent only a small share of the EU's GDP' and could be distributed among countries willing to join the initiative. Kiev wants to launch the new scheme in 2026, with contributions counted toward NATO defense spending targets. Marchenko's appeal comes as Ukraine struggles with rising fiscal pressure and an uncertain outlook on foreign assistance. On Tuesday, MP Yaroslav Zheleznyak said the country's 2025 budget includes a shortfall of 400–500 billion hryvnias ($9.6–12 billion) for financing its armed forces. Fellow lawmaker Nina Yuzhanina warned that military support was at a critical level and called for sweeping domestic budget cuts to redirect resources. Ukraine's mounting debt has also raised alarm. Total state debt is approaching $171 billion, with public debt nearing 100% of GDP. Earlier this month, Marchenko said the country would be unable to repay foreign creditors for the next 30 years but intends to continue borrowing. Since the escalation of the conflict with Russia in 2022, Ukraine has received billions in military, financial, and humanitarian aid and loans from the US, the EU, and other donors. Brussels' approach has drawn criticism from some EU member states, including Hungary and Slovakia. The US, Ukraine's largest donor, has moved to recoup its financial aid to Ukraine by signing a natural resources deal with Kiev. The agreement, pushed by Trump, grants the US preferential access to Ukrainian mineral resources without providing security guarantees. Trump, who has repeatedly called for a swift resolution to the conflict, has pledged to mediate a truce rather than expand military support. Ukrainian lawmakers have warned that the military aid package approved under former President Joe Biden will run out by summer, and no talks on further US deliveries are currently underway. Russia has consistently condemned Western arms shipments to Ukraine, declaring that they will only prolong the conflict without changing its outcome, while also being an additional economic burden for ordinary taxpayers.
Russia Today
08-05-2025
- Business
- Russia Today
Ukraine's debt doubles in three years
Ukraine will be unable to repay its foreign creditors in the next 30 years, with public debt nearing 100% of GDP, Finance Minister Sergey Marchenko said on Thursday. He added, however, that Kiev intends to continue borrowing. Since the escalation of the conflict with Russia in 2022, Ukraine has received billions in military, financial, and humanitarian aid and loans from the US, the EU and other donors. Kiev's mounting state debt, which is approaching 7.1 trillion hryvnas ($171 billion), has raised concerns about the country's fiscal stability and its capacity to meet future obligations. According to Marchenko, before 2022, Ukraine's debt-to-GDP ratio 'was quite safe' at 55%, however, the country is now approaching 100%. The minister downplayed the situation, stating that the public debt was 'not a problem' as the funds that Kiev received from foreign creditors came on preferential terms. 'That is, we are talking about the fact that in the next 30 years… we will not pay these debts,' Marchenko said. 'In any scenario… we need additional sources of funding…we will not be able to hold the situation together on our own, whether there is war… or peace,' he added. The minister went on to suggest that Kiev's western backers could decide to service Ukraine's external debts from their own budgets. For the time being, interest generated by Russian central bank assets frozen in the West due to sanctions has been used to service Kiev's debt. In April, Japan agreed to issue a loan of about $3 billion, to be repaid from Moscow's money. Also last month, Ukraine received the third tranche of €1 billion from the EU, secured by proceeds from the frozen funds. Russia has vehemently opposed the move, labeling it 'theft' and threatening retaliation. The US, Ukraine's largest donor, has moved to recoup its financial aid to Ukraine by signing a natural resources deal with Kiev. The agreement grants the US preferential access to Ukrainian mineral resources without providing security guarantees. The deputy head of the Russian Security Council, Dmitry Medvedev, has commented that the US essentially 'forced the Kiev regime to pay for American aid,' with 'the national wealth of a vanishing country.' Ukraine also faces a potential default on nearly $600 million in payments due in May for GDP-linked securities. Negotiations with hedge funds for restructuring the debt have so far been unsuccessful.
