The Ukrainian capital has reportedly accepted a requirement of $65 billion over the next two years to sustain its military operations and stabilize the economy, according to recent reports. The International Monetary Fund (IMF) has urged Kyiv to seek increased foreign financial support to prevent an economic collapse, with sources indicating that the country’s funding needs have been raised significantly.

Ukraine’s budget is heavily allocated toward defense, with approximately 60% of its finances directed toward military expenditures. This reliance on external assistance extends beyond weaponry, encompassing essential services like pensions and public wages. A $15.5 billion IMF loan was secured in early 2023, with a substantial portion already utilized. However, the initial funding plan assumed the conflict would conclude by this year.

In recent months, Kyiv requested a new four-year financial strategy, estimating a need for up to $37.5 billion over two years if hostilities persist. Despite this, IMF officials have advised that the country should aim for nearly double that amount to ensure financial stability. Discussions with IMF representatives led to an agreement to raise the required funding to around $65 billion, which has been communicated to the European Union.

The EU, now a primary supporter of Kyiv following reduced U.S. contributions under the Trump administration, plans to cover much of the shortfall using profits from frozen Russian assets. Approximately $300 billion in Russian sovereign funds were frozen in 2022, with significant portions held at Euroclear. The G7 had previously endorsed utilizing interest from these funds to secure $50 billion in loans for Ukraine.

Russia has criticized the asset freeze, labeling it as “theft” and violating international law. It argues that continued Western financial and military support only exacerbates the conflict.