Ukraine will need $37.3 billion in 2024 to maintain financial stability

Sugar products in a supermarket in kyiv, Ukraine. REUTERS/Gleb Garanich (Gleb Garanich/)

Ukraine will need $37.3 billion (more than €34 billion) in foreign assistance to maintain financial stability in 2024, according to an estimate endorsed by the International Monetary Fund (IMF) made public today by the Ministry of Finance.

According to a statement from this department of the Ukrainian Government, the Minister of Finance, Sergei Marchenko, recalled that the “timely” arrival of financial aid from Ukraine’s international partners is “vital” for the country to continue keeping the economy while Russian military aggression continues.

Ukraine closes the year amid uncertainty over the approval of multimillion-dollar items proposed by United States and the European Union.

In the American case, the Republican Party blocks in Congress the more than 61 billion dollars requested by the White House in order to continue offering military and financial support to Ukraine in 2024. White House has warned that the funds from the last approved item will be exhausted at the end of this year.

Meanwhile, Hungary is still vetoing the approval of a 50 billion euro package in financial aid proposed by the European Comission to the EU countries to continue supporting Ukraine until 2027.

The Ukrainian Minister of Finance has explained that the amount that the country will need by 2024 has been reduced by about 4 billion dollars compared to what was previously estimated, thanks to “measures to maximize income in public coffers, the activation of the domestic credit market” and the reduction of certain expenses.

John Kirby, Strategic Communications Coordinator of the United States National Security Council.  REUTERS/Evelyn Hockstein
John Kirby, Strategic Communications Coordinator of the United States National Security Council. REUTERS/Evelyn Hockstein (EVELYN HOCKSTEIN/)

Marchenko noted that Ukraine needs foreign assistance to meet social expenses, since the national budget is focused on covering military expenses.

On the other hand, the White House Security spokesman, John Kirbyassured this Tuesday that the US Government plans to announce another package of military aid to Ukraine this month and that, after that, they will have exhausted all the funds allocated by Congress for it and that they will not be able to send more assistance until the Senate Republicans vote in favor of it.

Furthermore, he explained that this lack of funds is occurring while Russia increases its attacks with drones and cruise missiles against Ukrainian cities at the same time as the Russian Army.“Tries to build a ground offensive in the east” and that, although kyiv remains “well armed,” it still needs American help.

“Ukraine still needs our help. And it is time for Congress to act to defend freedom and democracy in defense of our own national security interests, which are very much at stake here.”added the spokesperson.

On the other hand, Kirby has admitted the existence of a “plan B”, which has been previously drawn up and by which the military industry would collaborate with both the US and Ukrainian authorities to replace military equipment.

Some Republicans in Congress defend that this new shipment of aid to Ukraine must be accompanied by new investments to control the security of the southern border with Mexico, whose situation they consider to be an “absolute catastrophe.”

(With information from EFE)