Lack of funds and unwillingness to increase financing: military supplies to Ukraine are under threat – Bloomberg

Military supplies to Ukraine for the next year are under threat because some allies are facing difficulties obtaining funding, while others are refusing to increase funding to help Kyiv.

This was reported by *Bloomberg*, citing sources.

According to the agency, even if the G7 countries agree to a $50 billion loan to Ukraine backed by Russian assets, it will still be insufficient to support Kyiv’s needs next year.

The Ukrainian government forecasts a budget deficit of 19% of GDP. To fill this gap, about $35 billion is needed.

“The looming financial crisis among allies comes at a dangerous moment for Ukraine and could force Kyiv into negotiations from a position of weakness, sources say,” the publication reports.

European allies face their main constraints on the fiscal front.

“The government of Chancellor Olaf Scholz is limited by constitutional debt restrictions and has reduced direct financing to Kyiv. France has a new government following a turbulent election season and is under pressure from the EU to reduce its deficit. In Italy, Prime Minister Giorgia Meloni’s coalition may be bound by commitments to cut spending,” the article states.

Plans to increase the EU’s military budget are also in question – likely to be postponed until after the German elections, which will take place in the fall of 2025.

Even “aid from the United Kingdom, a steadfast ally that was often the first to supply modern weaponry, also appears to have been reduced recently,” sources told the agency.

Previously, *The Times* reported that Ukraine’s Western allies have nearly exhausted their weapons supplies due to prolonged deliveries to the Ukrainian army.