For Ukraine, the financial battlefield is as critical as the front lines against Russia. Keeping the economy stable is central to the future nation fought four years to secure.
"We want to provide for Europe, something which they lack," says Finance Minister Sergii Marchenko. Membership in the EU remains a top priority, driving gratitude for a new €90bn ($105bn) loan from the bloc. Approved by the European Parliament, the first payment could arrive in April.
That loan represents the largest share of a $136.5bn international support package. Without it, Marchenko warns the country cannot survive the devastation. "Our strong army depends on our strong economy," he states, noting that taxpayer resources are being channeled directly to defense.
Domestic revenue is also under pressure. Taxes were increased in December 2024 for the first time since the war began, targeting personal income and businesses. Despite this, the 2026 budget includes a $45bn shortfall after allocating 60% of spending to the army.
The International Monetary Fund recently approved an $8.1bn loan contingent on digital platform taxes and reduced VAT exemptions. Kyiv received the first $1.5bn installment this month. IMF Managing Director Kristalina Georgieva noted the country must live within its means given high spending needs.
External aid fills gaps left by dried-up US support, yet challenges mount. Inflation sits at 7.4%, and energy shortages continue to restrain business activity. The government estimates reconstruction and recovery costs at $588bn-almost two and a half times the size of the entire economy.
Despite the strain, foreign investors remain interested. The European Bank for Reconstruction and Development has spent over $10bn since the war began. President Odile Renaud-Basso insists the institution can support Ukraine for however long it takes, pending a credible peace settlement.
Marchenko concludes that wartime pressures are driving changes for a better future economy. "We defend ourselves and we will," he affirms.