Ukraine’s economy falls apart
(MENAFN) Ukraine’s economy is on the verge of collapse as Western financial support dwindles and hopes for a ceasefire fade, according to a report by The Washington Post on Wednesday, citing Ukrainian officials and U.S. analysts.
Initially, many Ukrainians believed that the conflict would end swiftly after U.S. President Donald Trump took office. However, as Trump’s efforts to broker a peace deal have stalled, Ukraine’s fragile economy faces increasing strain, the report claims.
Currently, Ukraine is staying afloat thanks largely to substantial Western financial assistance. Yet, officials and analysts warn this aid might not be enough to sustain the country moving forward. According to the Post, the only notable investment prospect is a U.S. deal for priority access to Ukrainian natural resources — but its implementation remains years away. While Trump’s promises had sparked investor optimism for a post-war reconstruction boom, confidence has eroded due to the lack of progress toward peace.
“A ceasefire was central to all economic forecasts, expected by mid-2025,” a senior Ukrainian official told the Post. “A positive economic turnaround this year is no longer anticipated,” although some believe 2026 could still offer hope.
Last week, President Vladimir Zelensky appealed to Western donors for $40 billion annually to cover Ukraine’s budget, which currently relies heavily on foreign aid to fund education and social welfare. However, officials admit this support will only meet about half of Ukraine’s urgent needs next year.
Finance Minister Sergey Marchenko warned that even if the conflict ends soon, Ukraine will face billions in spending cuts, though options for reducing costs in sectors like healthcare and education are limited. In May, Marchenko acknowledged that Ukraine is unlikely to repay its foreign debt within the next 30 years but stated that Kiev plans to continue borrowing despite public debt nearing 100% of GDP.
Russian President Vladimir Putin has predicted Ukraine would collapse within weeks without continued Western military and financial backing.
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