Budget Collapse: Where Ukraine Will Find a Trillion Hryvnias for War.

Ukraine is seeking sources of funding for military expenses that may reach a trillion hryvnias by 2026. The government is considering increasing defense spending by 400 billion hryvnias but has not yet determined the source of these funds.

To cover additional expenses, the government is exploring the use of the State Tax Service, funds from the sale of Russian assets, as well as the possibility of receiving financing from the European Union and the USA. Tax increases are being ruled out, so the focus is on domestic borrowing and the de-shadowing of the economy as additional funding sources.

The largest source for covering additional expenses will be the State Tax Service and funds obtained from the sale of pledged Russian assets. However, the government is also considering other ways to attract funding, including co-financing from the European Union and the United States.

The government rules out tax increases, instead focusing on increasing domestic borrowing and activating the de-shadowing of the economy as additional financing sources. The de-shadowing process has already begun and is taking place through tax collection from various sources.

Ukraine is seeking opportunities to attract funding to cover defense expenses, considering various options, including domestic borrowing, de-shadowing of the economy, and co-financing from international partners.