Media: Ukraine may run out of money in February

Ukraine may deplete budget reserves as early as February if the European Union fails to agree on providing Kyiv with "reparation loans" from seized frozen Russian assets.

As reported by BAKU.WS, this is written by Politico.

"Ukraine will face a funding crisis when 2025 turns into 2026, and it is on track to run out of money in February unless Belgium stops blocking the audacious plan to provide €140 billion in reparation loans using frozen Russian Central Bank assets stored in a depository in Belgium," the publication writes.

Previously, Politico wrote that Ukraine might face budget funding problems only by April 2026. The article does not specify why the publication changed its forecast. In October, Belgium blocked the initiative to seize frozen Russian assets, citing, among other things, the need for guarantees that it would not have to compensate Russia alone in the future. EU leaders plan to discuss the issue again at the next summit in December, but as it approaches, "there are few signs that EU officials and the Belgian government can break the deadlock," the publication writes.

Since the US has suspended financial support for Kyiv, the European Union will have to find a solution to the problem on its own, according to the publication. "If there are no reparation loans, it seems extremely unlikely that EU member states will agree to resort to government borrowing instead," the newspaper writes. Therefore, ultimately, funds to support Ukraine will have to be sought by a "coalition of the willing," while doing so against a backdrop of political instability in the country and a corruption scandal.