Ukraine may reach the limits of its defense funding in as little as two months due to a combination of various factors which are putting tens of billions of euros in critical donor support at risk, Bloomberg reported on Friday.
International support has been critical to Ukraine’s defense for more than four years, since Russia first launched its full-scale invasion.
Kyiv currently has only enough funds to cover spending until June, according to estimates shared with Bloomberg by both domestic and foreign officials, who spoke to the outlet on condition of anonymity.
Kyiv Post previously reported that Ukraine needs approximately $52 billion in external financing for 2026. The state budget remains under pressure from significant defense and recovery costs.
Three months into 2026, the government has already raised $5.5 billion through the ERA mechanism and support from the International Monetary Fund (IMF), Japan, and the World Bank, according to the Ministry of Finance.
Earlier this month, the IMF warned that Ukraine could face delays in receiving funding from the $8.1 billion program as Ukraine’s parliament rejected the digital platform tax bill, the VAT threshold change and a series of other tax initiatives required to meet the IMF benchmarks.
The Ministry of Finance has now published on its website a draft law that includes several of the IMF’s structural benchmarks related to taxes.
The draft package of measures includes:
- mandatory registration of value-added tax (VAT) for sole proprietors (FOPs) with an income of more than Hr. 4 million ($90,000) per year
- taxation of imported parcels worth up to €150 ($172)
- extension of the 5 percent military levy – a mandatory income tax used to fund the armed forces – even after martial law ends
- introduction of international automatic exchange of income information received through digital platforms and taxation in digital platforms (Uklon, OLX, etc.)
However, the bill has not yet been registered with parliament at the time of writing.