The ongoing conflict in Ukraine is taking a significant toll on the country’s economy. Since Russia’s invasion, Ukraine’s GDP has decreased by 25%, and its central bank is running low on foreign reserves. The recent attacks by Russia on critical infrastructure have only worsened growth projections for the nation. On June 17th, Ukraine’s finance minister, Sergii Marchenko, emphasized the importance of having a strong economy to support a strong military in a warning.
Fortunately, Ukraine received a funding package of $60 billion from American lawmakers in April, which will help ensure that the country remains equipped with weapons for the foreseeable future. Additionally, the G7 announced plans on June 13th to provide Ukraine with another $50 billion by using Russian central-bank assets frozen in Western financial institutions. Despite these promising developments, Ukraine is still facing a cash crunch that needs to be addressed promptly.
