The ongoing war in Ukraine continues to have a significant impact on the country’s economy. Since Vladimir Putin’s invasion, Ukraine’s GDP has decreased by 25%, and its central bank is rapidly depleting foreign reserves. Recent attacks by Russia on critical infrastructure have further worsened growth forecasts for the country. Ukraine’s finance minister, Sergii Marchenko, emphasized the importance of having strong economies to support strong armies in a warning on June 17th.
Fortunately, Ukraine received a funding package of $60 billion from American lawmakers in April, ensuring that the country will not run out of weapons anytime soon. 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.