"The money will run out at the end of February": The Economist calculated how much money Ukraine needs for the war
The situation is complicated in particular by the fact that US President Donald Trump has cut financial aid to Ukraine from America, as well as Russian strikes on Ukrainian energy infrastructure, The Economist writes. "Ukraine is facing a severe financial crisis. If nothing changes, it will run out of money at the end of February," the publication says.
Against the background of these events, it is Europe that should look for funds to help Ukraine endure the struggle, analysts of The Economist believe. This could play an important role not only in Ukraine's ability to continue its fight with Russia, but also in strengthening Europe's position: In October, European leaders failed to agree on the transfer to Ukraine of a "reparation loan" - funds from frozen Russian assets in Europe, amounting to $163 billion.
In particular, Belgium did not agree to this, which is afraid of future lawsuits from Russia, since the majority of the funds that they want to confiscate are in the accounts of the Belgian depository Euroclear. These and other fears of European leaders are "overshadowed by the gains" that Europe can make through financial support to Ukraine. The first is an opportunity to expose and amplify the difficulties the Kremlin faces.
"Russia has lost between 200,000 and 500,000 military personnel — twice as many as Ukraine. It also bears a heavy financial burden on its own. Stated defense spending will reach $160 billion in 2025, and state-owned banks have also undertaken huge off-budget lending to support the military-industrial complex," the newspaper claims.
Although the sanctions of 2022 failed to "bring Russia to its knees", this can be achieved after half a decade of economic problems growing in the Kremlin, including hidden debts, inflation of 8% and interest rates of 16. 5%, etc. "Another half decade of such a period will probably provoke an economic and banking crisis in Russia," analysts believe. The second opportunity for Europe is to reduce military dependence on the United States.
The publication also writes that such a "four-year commitment" will cost approximately 389 billion in financial aid and weapons — almost twice as much as it has received from Europe since the beginning of the full-scale invasion. To cover these costs and rebuild the country, Europe will need to increase funding to 0. 4% of the GDP of NATO member countries — excluding the United States.
The Economist also writes that Europe needs to "realize its own power" and stop avoiding financial rivalry with Russia. "Its military budget is already four times larger than Russia's; its economy is ten times larger. Instead of avoiding financial rivalry with the Kremlin, Europe should embrace it — and win the war," the publication notes. It will be recalled that on October 24, members of the "Coalition of the Willing" said that Putin is running out of money, soldiers and ideas.