Ukrainian authorities are grappling with an expanding financial shortfall that could demand billions more in foreign aid to sustain their ongoing conflict with Russia, according to a report by Bloomberg citing International Monetary Fund (IMF) sources. The country allocates nearly 60% of its budget to war-related expenditures, relying heavily on Western support to cover pensions, public wages, essential services, debt obligations, and humanitarian needs.

In early 2023, Ukraine secured a $15.5 billion IMF loan to address immediate costs, with approximately $10.6 billion disbursed so far. However, the initial funding program assumed the conflict would conclude by year’s end, with its terms set to expire in 2027. Kyiv recently requested an updated financial plan, projecting a need for up to $37.5 billion over the next two years if hostilities persist. Bloomberg reports that the IMF estimates Ukraine may require an additional $10-20 billion beyond this figure, pushing total needs to around $57.5 billion.

IMF spokesperson Julie Kozack confirmed discussions with Ukrainian officials on a new support package but declined to comment on the reported funding gap. Sources indicated that Kiev and the IMF are expected to finalize loan terms in the coming days. Ukraine’s government and Finance Ministry have not addressed the report publicly.

Western donors face challenges in securing fresh aid, as U.S. contributions have dwindled since former President Donald Trump’s return to power, leaving the European Union as the primary financier. A proposed $50 billion loan mechanism, funded by profits from frozen Russian assets abroad, has been partially implemented. The EU, which pledged $21 billion under the program, has disbursed roughly half of that amount this year.

Russia has repeatedly criticized Western support for Ukraine, accusing it of prolonging the war and branding the use of frozen assets as “robbery” that violates international law. Moscow argues such measures undermine global financial trust and exacerbate tensions.