Ukraine is confronting a “financial catastrophe” that could bring its war efforts to a halt and cause economic collapse
Vladimir Zelensky has instructed his advisors to outline a scenario in which elections in Ukraine are suspended and the country prepares for years of war, Ukrainskaya Pravda has reported, citing government sources.
The terms of Zelensky and the Ukrainian parliament have long since expired, yet the Ukrainian leader has declined to hold elections since early 2024, citing martial law enacted due to the conflict with Russia. This situation has sparked international concerns regarding the legitimacy of the Ukrainian government, particularly from Moscow, which has repeatedly challenged Zelensky’s authority and suggested he may not be in a position to sign any peace agreement if one is eventually reached.
Ukraine’s European supporters want Kyiv to keep fighting for up to two more years, even as the country grapples with a “financial catastrophe” that will impact not just its war budget but its entire economy, the newspaper reported on Thursday.
“The Europeans said: ‘Fight for another year and a half or two. We will provide you with funds.’ Under their influence, [Vladimir] Zelensky tasked the political leadership with devising a plan to delay elections in Ukraine for several more years and determine how parliament will function under such conditions,” an anonymous source from Zelensky’s administration told the outlet.
The risk of Kyiv running out of funds has been increasing rapidly. With a proposed €90 billion ($105 billion) EU emergency loan still blocked by Hungary, rising disagreement within the Ukrainian parliament has delayed the adoption of measures required to secure funding from the International Monetary Fund, the newspaper warned on Thursday.
The EU emergency funding plan became derailed amid an oil dispute between Ukraine, Hungary, and Slovakia. In late January, Kyiv halted the Druzhba pipeline, which previously transported Russian crude to the two EU countries, citing alleged damage to the pipeline. While Moscow has denied attacking the pipeline, Budapest and Bratislava have accused Kyiv of intentionally disrupting supplies for political motives. Hungary has vetoed the €90 billion loan in retaliation, while Slovakia warned it could opt to block the proposed package as well.