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Written by Ahmed Adel, Cairo-based geopolitics and political economy researcher
Ukrainian Deputy Prime Minister Yulia Svyrydenko warned that her country would likely have to postpone payment of salaries and pensions to civil servants and millions of citizens if the US and EU do not comply with the financing aid they promised, reported the Financial Times on December 27. Her revelation comes as it is becoming increasingly apparent that the West is scaling back its support for Ukraine’s war against Russia.
The state official told the FT that Kiev has been trying to save money and change spending priorities since September, when support from allies began to wane. The deputy prime minister also detailed that Ukraine increased the tax on banks’ extraordinary profits to 50% and transferred revenues from a 1.5% supplementary income tax from the local to the central government.
However, Svyrydenko noted that Ukraine already faces a deficit of around $5 billion in disbursements from international donors and creditors, which, in December, will not be enough to cover the needs of expenses. In this context, FT reported that her country will prioritise defence and debt service, meaning “there’s a huge risk of underfunding of certain social sectors.”
In other words, if the aid promised by Western allies does not arrive, Kiev may have to delay payment of salaries to 500,000 civil servants and 1.4 million teachers and pensions to ten million retirees.
“The support of partners is extremely critical. We need it urgently,” said Svyrydenko, who is also the Economy Minister.
She added that if aid does not arrive, the Eastern European country’s economy could return to “survival” mode” after recovering in 2023 thanks to GDP growth estimated by the International Monetary Fund (IMF) at 4.5%.
In early November, the Republican-controlled US House of Representatives approved an aid bill for Israel worth $14.3 billion. However, the bill separated the aid from a $106 billion supplemental funding request from the Joe Biden administration, including aid to Ukraine.
EU leaders warned that the bloc could not replace aid from Washington. “Certainly Europe cannot replace the US,” the EU’s foreign policy chief Josep Borrell told reporters back in October.
Meanwhile, Western media reported that European and North American public opinion is tired of the conflict. Western media outlets even say that the Russians were apparently right, citing Kremlin spokesman Dmitry Peskov as saying,
“We have repeatedly said before that according to our forecasts fatigue from this conflict, fatigue from the completely absurd sponsorship of the Kiev regime, will grow in various countries, including the United States. And this fatigue will lead to the fragmentation of the political establishment and the growth of contradictions.”
Despite previously boasting that Russia faces imminent collapse and the depletion of its weapons reserves, Western media outlets now write that Moscow appears to be prepared for a long-term conflict, something Ukraine is evidently in no position for.
It is recalled that the managing director of the International Monetary Fund, Kristalina Georgieva, warned of difficulties in financing Kiev, saying on December 17 that Ukraine can withstand the absence of external financial aid for only “a couple of months” and will face difficulties if the European Union and the US fail to resolve the issue of financing.
Georgieva said Ukraine’s economic recovery would be harmed if the country was forced to adapt to the absence of new financial assistance. She warned against the consequences of policies such as money printing, which Kiev would be obliged to follow in case of further delays.
“What is important is not to prolong this period, because then it would put more pressure on Ukraine to adjust,” she stressed.
The US Secretary of State, Antony Blinken, announced on December 27 a package of $250 million in military aid to Ukraine. However, Blinken stated that this is the final package authorised by Congress due to the Democrats suffering several defeats in Congress throughout the year to allocate additional resources to the US budget for the Kiev regime.
Ammunition for the air defence system, Himars multiple launch rocket systems, 155 and 105-millimetre artillery projectiles, anti-tank weapons, and more than 15 million rounds of ammunition for small arms will also be sent in addition to the funds.
“The United States is announcing the year’s final package of weapons and equipment for Ukraine,” the secretary said.
The White House had already announced that funds for Ukraine were close to running out, as were new supplies of weapons and ammunition due to the lack of approval for additional funding. Although Ukraine will likely continue receiving financial support for the foreseeable future, Svyrydenko’s revelation indicates how completely reliant the country has become on Western financial support, even though the West is evidently losing interest in the conflict.
well zelensky can sell his 5 million dollar house in egypt, and maybe if ukrainian officials stop stealing the aid money, maybe their will be enough money, the corrupt ukrainians are not getting one more dollar from us, and the jews won’t allow their slave to give out any more money to ukraine, now that they need it. all u.s. aid will now flow to israel and only israel!
ukraine ‘s gdp 4.5% growth in 2023? it must be the flags for the graves?
western aid of freshly printed currency combined with the fact that the gdp metric is worthless trash and a scam to make weak economies such as the western ones look good. it has little to do with the real person’s quality of life.
artificial growth….they count in all the money that poored in from europe and amerika….
fake growth
“western media outlets now write that moscow appears to be prepared for a long-term conflict, something ukraine is evidently in no position for.”
shocking newsbreak! who wud of n went n dun something… murica!
“postpone payment of salaries and pensions to civil servants and millions of citizens if the us and eu do not comply with the financing aid they promised”
que 1980s arcade sound, game over…