Ukraine Seeks New Funding Sources to Finance Military, WSJ Reports

Ukraine is urgently seeking new funding sources to cover its growing budget deficit and continue its fight against Russia. Officials are increasingly selling government bonds, imposing taxes on Russian assets, and hope to receive financial assistance from the EU, according to The Wall Street Journal.

Ukraine's military expenditures next year could reach $45 billion, while the government will face a $40 billion budget deficit in 2024. New measures to offset these expenses include the sale of war bonds to private investors abroad, proposals to tax interest on frozen Russian assets such as Euroclear, and restructuring of external debts.

In the long term, Ukraine aims to join the EU and secure related financial assistance, WSJ notes. “If the government cannot close the budget deficit, it will not be able to finance the war efforts,” said Vitaly Vavryshchuk, head of macroeconomic research at Kyiv's ICU brokerage, in an interview with the publication.

Last week, the U.S. reported that the country's economy has been drained due to the ongoing conflict in Ukraine.