Ukraine faces $56 billion budget gap as Russian strikes cripple economy

Ukraine faces a severe budget crisis as Russian strikes cripple its economy, with the government scrambling to secure $56 billion this year to cover a funding gap equivalent to a quarter of its economic output. Kryvyi Rih, President Zelenskiy's hometown, exemplifies the strain as Russian airstrikes halted its steel plant and mines, forcing the city of 600,000 to prioritize survival. Ukraine's defence spending hit $44 billion in nine months, while tax revenue fell short at $42 billion, worsened by attacks disrupting logistics and businesses. Foreign aid delays, tied to stalled reforms, threaten $29.5 billion in support, prompting officials to seek accelerated EU loan disbursements. The government has frozen non-essential spending and proposed a record $110 billion defence budget for next year, with plans to use frozen Russian assets to bridge the gap.