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A political impasse in the US Congress over a $60 billion aid package for Ukraine has left Kiev desperately seeking alternative donors to finance its military action against Russia and prevent sweeping government spending cuts.
Ukraine has allocated nearly half of its $87 billion budget for this year to defense-related spending, but its domestic revenue is only $46 billion, meaning it will need to cover the shortfall with help from international partners and cuts in non-military spending. The shortage will be further widened by an expected influx of up to 500,000 new recruits, and billions more will be required to pay them, train and equip them.
“We have practically exhausted our capabilities – all internal resources are used to finance the army,” the publication quotes Roksolana Pidlasa, chairman of the parliamentary budget committee of Ukraine.
According to her, Ukraine’s original Plan A assumed that assistance from the US and EU would begin to arrive in January. Hungary delayed the EU’s four-year €50 billion non-military aid package, which was eventually agreed in mid-February.
Because of these delays, Kiev had to switch to backup plans. He is currently negotiating assistance with other G7 countries, in particular Japan and Canada.
Author: Timoschul
Source: WolneMedia.net
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