Ukraine faces a funding gap of up to 54 billion dollars through 2029, according to preliminary estimates by the International Monetary Fund disclosed by informed sources, as Kyiv seeks additional financial support from its partners amid the continuing war with Russia.
Preliminary estimates and a donors’ meeting
The estimated uncovered funding needs are distributed between 30 billion and 35 billion dollars next year, in addition to about 17 billion dollars in 2028 and 2 billion dollars in 2029. The sources stressed that the estimates were preliminary and subject to change, while an International Monetary Fund spokesperson declined to comment on them.
Donors to Ukraine held a meeting in the Belgian capital Brussels on Tuesday to accelerate talks on providing Kyiv with additional financial aid.
Earlier this year, the European Union approved a 90 billion-euro loan package (about 102 billion dollars) and urged its partners to honor commitments to provide an additional 30 billion euros (about 34 billion dollars) in 2026 and 2027.
Reforms required for aid to be released
The European Commission, the executive arm of the European Union, and the International Monetary Fund are pressing the Ukrainian government to proceed with its reform plan, allowing more international aid to be released and improving the management of funds provided to Kyiv.
European Commissioner for Economy Valdis Dombrovskis and Ukrainian Finance Minister Serhii Marchenko were scheduled to discuss on Tuesday the reforms required for Ukraine to receive the next tranche of EU budget support, according to a European Commission spokesperson.
European options for financing Ukraine
European Union member states are considering options for covering Ukraine’s financial needs in the coming years, with expectations that the war will continue next year and that Russian and Ukrainian attacks will intensify following an escalation in recent months.
Some member states have revived a proposal to use about 210 billion euros (about 238 billion dollars) in Russian central bank assets frozen in Europe to provide additional funding to Kyiv, while others have proposed issuing more joint European Union debt. The member states have yet to reach agreement on the mechanism for the additional financing.
