Zelensky: Without another tranche from the EU, Ukraine's budget will face a deficit of $45-50 billion, with drone production volumes dropping dramatically
If Ukraine does not receive sufficient funding from the European Union in the spring, the country will face a significant budget deficit next year, which will also affect drone production, said President Volodymyr Zelensky during a conversation with journalists in Brussels.
These days, the EU leaders met for a summit in Brussels, where they are discussing financing for Ukraine for the next two years, including an initial loan of €90 billion secured by frozen Russian bank assets.
According to Zelensky, if Ukraine does not receive the funding, the country will face a budget deficit of up to $45-50 billion or even more. The production of Ukrainian weapons, in particular drones, also depends on funding from partners and may drop without the EU tranche.
“We use our long-range capabilities today, and they work, as well as sanctions on Russian energy from our European and American partners. We are doing everything we can to reduce Russia's energy resources. All this may be gone,” the president said.
So far, the EU leaders have been unable to make progress regarding the use of Russian assets. Earlier, Politico wrote that the Belgian government fears ”it will be on the hook for any legal and financial claims filed by Russia.” Therefore, it calls on all EU countries to back this loan, which effectively means using taxpayers' money to cover any costs.
Belgian Prime Minister Bart De Wever also recently said that using frozen Russian assets “could block Ukraine peace deal.”
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