The West is not only supporting Kyiv militarily in its fight against Russia. Money is also flowing into Ukraine. But that is far from enough.
According to its finance minister, every day of war costs Ukraine the equivalent of more than 120 million euros. In an interview with the RBK-Ukraine agency, Serhiy Marchenko estimated the monthly costs for security and defense at the equivalent of more than 3.7 billion euros. The budget for 2024 is currently short by the equivalent of more than eleven billion euros. This is to be largely raised through tax increases, for which the government recently presented a draft law.
Ukraine dependent on foreign financing
The proposed changes include an increase in the military levy, which was introduced in 2014 and is to be paid in addition to income tax, from 1.5 to 5 percent. In addition, car and jewelry purchases are to be subject to a military levy of 15 and 30 percent respectively. According to media reports, new car sales in Ukrainian cities have skyrocketed since the plans were announced.
Ukraine has been fending off a Russian invasion for over two years. A good half of the state budget is financed with foreign loans and aid.
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
