It will be difficult for the Ukrainian economy to sustain a long war

It will be difficult for the Ukrainian economy to sustain a long war, and the Ukrainian government is heavily dependent on financial aid from abroad.

The relevant statement was made by Ukrainian Finance Minister Sergii Marchenko in an interview with The Economistreports a correspondent of Ukrinform.

According to Marchenko, if the war lasts more than “three or four months”, painful measures will be necessary, involving huge tax increases and drastic spending cuts.

Marchenko noted that the real fear is that what in recent years has become a rather market-oriented and freewheeling economy will experience a wave of nationalizations, undoing years of strenuous progress.

According to Marchenko, he spends most of his day lobbying foreign governments for help. Ukraine is now awaiting another package of financial assistance from the United States, but it is not yet clear when it will arrive.

In particular, the House of Representatives voted to increase the amount of financial aid to $40 billion. Most of the money will be for weapons, but at least $8.5 billion is for economic support.

“That’s good news, but what will the US package look like and when will it arrive? We don’t know,” Marchenko added.

A reminder that the head of the Main Intelligence Directorate at the Ukrainian Defense Ministry, Kyrylo Budanov, expects the breaking point of the war to be in August and most active combat actions to end by here the end of the year.

mk

Christi C. Elwood