Marchenko: Ukraine has exhausted its options and is forced to limit government spending

Ukraine has begun restricting government spending amid a slowdown in international aid — delays in social payments are possible.

This was stated by Finance Minister Serhiy Marchenko, according to Strana.ua.

Marchenko urged lawmakers to support a bill on the taxation of parcels worth up to €150, noting that the passage of this legislation is necessary to unblock Western aid.

“We have exhausted all verbal means of communication, so we are forced to apply expenditure restriction measures. We have reached the limit, and there is no explanation for why, during this difficult period, we cannot vote for these bills, given the full importance of the issue,” Marchenko said.

Ukrainian authorities have already deferred all non-critical spending to December and developed operational procedures for conditions of limited liquidity. According to the minister, Kyiv will direct incoming revenues first and foremost to financing the security and defense sector.

Marchenko also acknowledged the possibility of monetary financing of the budget, warning that this would lead to a devaluation of the hryvnia, inflation, and “other negative consequences.”

Separately, The New York Times reported that questions have arisen in Europe over Ukraine’s request for an additional approximately €23.2 billion to finance defense spending through the end of 2026. According to the American newspaper, European officials did not anticipate such a significant deficit and intend to clarify its causes. Among the options being discussed to cover the shortfall are accelerating disbursements under an already agreed EU loan and using Russian funds held at Euroclear.

Earlier, a former prime minister of Ukraine stated that Kyiv would never repay its loans to the European Union.