KYIV (Reuters) -An International Monetary Fund mission started work in Ukraine on Wednesday as Kyiv seeks funds to cover a gaping hole in its wartime budget next year.
Kyiv’s spending on the army is continuing to rise as Russia’s war in Ukraine drags on, and the financing gap is growing.
“Our focus: budget 2026, fiscal forecast, structural reforms. We align the next steps of cooperation, taking into account the needs of the state budget for the coming years,” Finance Minister Serhiy Marchenko said in a post on X.
The government is yet to unveil its draft budget for next year. This year’s budget deficit is planned at about $38 billion.
Central Bank Governor Andriy Pyshnyi has said that only about a third of the $65 billion needed for both 2026 and 2027 has been pledged, with talks under way on the rest.
Ukraine spends most state revenues on the army and finances social and humanitarian spending with foreign aid, which finance ministry data show has totalled nearly $145 billion since Russia launched its full-scale invasion in February 2022.
Ukraine currently has a $15.5-billion four-year lending program with the IMF and has already received $10.6 billion under the Extended Fund Facility loan, according to official data.
Ukrainian officials have said Kyiv wants to start talks on a new program with the IMF.
(Reporting by Olena Harmash, Editing by Timothy Heritage)
