Ukraine faces shortage of funds for civil servants’ salaries – Wall Street Journal reports

The government of Ukraine may face difficulties in paying salaries to civil servants from November due to potential delays in funding from the United States.

This information has been reported by the Wall Street Journal, citing Ukrainian officials.

“The Ukrainian Ministry of Finance was anticipating potential funding delays due to the U.S. government’s struggles with a shutdown, and it has the resources to meet budgetary needs through October. However, after November, the government may be forced to decide which services or salaries to cut or whether to attempt to secure a loan,” the article states.

According to the source cited in the report, the suspension of funding for the Ukrainian government could put pressure on Volodymyr Zelensky, who may face “even louder criticism from competing factions.”

The newspaper also notes, citing a U.S. official, that the United States Agency for International Development (USAID) will process the $1.15 billion payment in October under the World Bank program if Ukraine can demonstrate that it has properly spent the funds received in the previous tranche.

It was reported on Sunday that U.S. President Joe Biden had signed a law approved by Congress, which will allow the government’s operations to continue for 45 days, until November 17. However, the law does not allocate funds for Ukraine’s needs. President Biden had previously stated that Washington “under no circumstances” could afford to cease its support for Kyiv.

A government shutdown in the United States refers to the cessation of government agency operations due to a lack of funding. In such a scenario, civil servants engaged in critical work would be compelled to continue their duties without payment, while others would be placed on furlough. The U.S. government has previously acknowledged that a shutdown could have catastrophic consequences for the entire country.