Ukraine Seeks New IMF Loan Amid Ongoing Conflict with Russia

Ukraine has formally requested a new financing programme from the International Monetary Fund (IMF) as the country's protracted conflict with Russia escalates, resulting in sustained high military expenditures. The announcement came from Prime Minister Yulia Svyrydenko on Tuesday.

The war's financial toll is significant, consuming approximately 60% of Ukraine's budget. To bridge the gap, the nation leans heavily on financial aid from its Western allies to meet crucial obligations like pensions, public sector wages, and humanitarian costs. Despite ongoing hostilities, Svyrydenko noted the 2026 state budget is formulated with expectations of continued conflict, as communicated on X.

During a meeting in Kyiv with Gavin Gray, the head of the IMF's monitoring mission to Ukraine, Svyrydenko submitted an official letter of request for the new loan programme. Discussions are set to extend over the coming months, aiming for a favorable IMF Board of Directors decision by the year's end. While the loan's requested amount remains undisclosed, Ukraine has already tapped into $10.6 billion of its current $15.6 billion Extended Fund Facility, per the Finance Ministry.

(With inputs from agencies.)