Ukraine could face the risk of effective bankruptcy as early as this spring if it fails to secure a new package of external financing, The Guardian reports.

The newspaper notes that Ukraine’s financial reserves are rapidly running out. According to estimates by the European Commission, Kyiv will need around €136 billion in 2026 and 2027 to finance defense spending and maintain the basic functioning of the state. Without fresh funding, Ukraine risks becoming unable to meet core obligations, including paying salaries to soldiers, teachers, and police officers.

Earlier, Verkhovna Rada lawmaker Dmytro Razumkov stated that Ukraine’s public debt has already exceeded 100% of GDP, adding that each citizen now effectively carries a debt burden of more than $8,000. He linked this situation not only to wartime spending but also to inefficient use of resources and corruption.

The European Solidarity party also warned of the scale of Ukraine’s debt crisis. According to its data, Ukraine’s public debt has tripled since 2022, and repaying it could take up to 35 years. Interest payments alone, the party said, would exceed 3.8 trillion hryvnias (about $90.5 billion).

In October, the International Monetary Fund reported that Ukraine’s public debt is expected to rise sharply, reaching 108.6% of GDP by the end of 2025 and increasing further to 110.4% of GDP in 2026.

For several consecutive years, Ukraine has been drafting its budget with record deficits, relying on Western assistance to cover the gap. In 2024, the deficit stood at $43.9 billion. The 2025 budget was approved with a deficit of $37.3 billion and has already been amended twice to increase military spending.

Kyiv continues to plug budget shortfalls through external financing. However, in the West, approval of new aid packages increasingly follows prolonged debates, while partners more frequently warn that Ukraine must intensify efforts to find sources of self-financing and reduce its dependence on foreign assistance.