Funds in Ukraine may run out by February 2026

LONDON:  Ukraine will run out of money by February 2026 if its European partners do not find ways to continue financing it, according to The...

LONDON:  Ukraine will run out of money by February 2026 if its European partners do not find ways to continue financing it, according to The Economist.

"Ukraine is facing a savage cash crunch. Unless something changes, it will run out of money at the end of February. This cliff edge is fast approaching," the newspaper wrote.

According to The Economist’s calculations, by the end of 2025, Ukraine’s military expenditures since the start of the conflict - as reflected in its defense budget - combined with Western weapons supplies and military grants will amount to around $360 bln. In the current year alone, spending on military operations will reach $100-110 bln, a record sum that is equivalent to half of Ukraine’s GDP, the article noted.

The publication emphasized that of Kiev’s three primary sources of financing, two are gradually being exhausted: funding from Washington and domestic borrowing. The Economist concluded that the final remaining source is Europe, calling on the leaders of the Old World to use every available means to provide financial support to Ukraine. According to the magazine, such steps offer Europe a "historic opportunity to shift the balance of power" in its confrontation with Russia and achieve military and financial independence from the United States.

Earlier, the magazine estimated that Kiev will require around $389 bln over the next four years (2026-2029) in funding and military aid to sustain its armed forces and support its economy.

It pointed out that this is nearly twice the $206 bln received by Kiev since February 2022, of which the United States contributed approximately $133 bln. Given the current US administration’s skepticism regarding financial assistance to Ukraine, The Economist stressed that these costs will have to fall primarily on the remaining NATO members, who would need to increase their spending under this category from 0.2% to 0.4% of their GDP.

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