The delay in U.S. military aid has worsened Ukraine’s budget deficit, leading to a critical shortage of resources for its troops battling Russian forces. Ukrainian Finance Minister Serhiy Marchenko revealed that the deficit is nearly a quarter of the GDP, amounting to $43.5 billion. With Russian troops advancing in Donbas, Ukrainian soldiers lack essential supplies and equipment, hindering their defense efforts.
The slow disbursement of the approved $27 billion military aid by the U.S. Congress has forced Ukraine to allocate more funds upfront, impacting salaries for troops. Marchenko urged Western allies to expedite a $50 billion loan for military spending, previously agreed upon by the G7 leaders. This loan would be repaid using interest from frozen Russian assets totaling $300 billion.
As Ukraine struggles to secure adequate military support, the economy also faces challenges due to a shortage of workers. Various sectors are affected, including supermarkets, transportation, manufacturing, and energy projects. The situation calls for urgent action to address both the military and economic crises in Ukraine.
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