Ukraine Faces $56 Billion Budget Gap as Russian Strikes Cripple Economy

Ukraine faces its largest budget crisis since Russia's 2022 invasion, with a $56 billion funding gap this year as Russian strikes cripple industry and tax revenue while war costs soar to $190 million per day. Russian airstrikes have halted operations at major steel plants, including ArcelorMittal's complex in President Zelenskiy's hometown of Kryvyi Rih, while attacks on ports cut grain exports by 36.6% in September. Ukraine has raised only $42 billion in taxes against $44 billion in defence spending, with $29.5 billion in foreign aid delayed pending reform legislation. The government has frozen non-essential spending and seeks to accelerate EU loan disbursements, though officials warn this could strain next year's budget. Ukraine proposes $110 billion in defence spending for 2025 and advocates using frozen Russian assets to cover the projected $32 billion shortfall.