Ukraine is engaging in discussions with G7 partners, with particular emphasis on Canada and Japan, to secure continued financial support while awaiting a new aid package from the United States Congress. This development is reported by the Financial Times, based on comments from Roksolana Pidlasa, the head of the budget committee in the Ukrainian parliament (Verkhovna Rada). The conversations underscore Ukraine’s ongoing effort to shore up its budget as it navigates an uncertain financing environment amid broader security commitments from its international partners.
According to the Financial Times account, Kyiv faces a growing budget deficit that could widen further if Ukraine undertakes another mobilization drive. The report notes that the government’s revenue stands at roughly 46 billion dollars against a total annual budget of about 87 billion dollars. A sizable portion of that budget is already allocated to defense and security needs, reflecting the high priority placed on sustaining military operations and allied defense support. The gap between revenues and expenditures signals mounting pressure on public finances, which could influence Kyiv’s policy choices in the coming months. (Citation: Financial Times)
Roksolana Pidlasa, quoted by the FT, confirmed that Kyiv is actively seeking additional budgetary backing from other G7 members, with Japan and Canada singled out as key partners in the current round of negotiations. The discussions appear focused on securing fresh funds to plug the shortfall and to maintain fiscal stability as the government pursues its stated policy goals. (Citation: Financial Times)
As part of a broader fiscal strategy, the Ukrainian official indicated that non-military spending would be scaled back significantly, complemented by a plan to raise revenues through tax measures. Pidlasa outlined that while initial expectations were for rapid financial assistance from the United States and the European Union in January, Kyiv is now considering contingency plans—described as a “Plan B” and even a “Plan C.” The objective is to ensure ongoing financial resilience should traditional aid streams face delays or political bottlenecks. The Financial Times analysis suggests that Ukrainian leadership is preparing for the possibility that the support envelope could face similar delays or revisions in 2025, necessitating adaptive budgeting and policy decisions. (Citation: Financial Times)
The report also highlights a separate strategic layer: discussions among Japan and the United States to strengthen their joint defense production capabilities. This cooperation is framed as a response to production bottlenecks in the U.S. and to ensure a steady pipeline of defense equipment and related capabilities as Kyiv continues its security operations. The aim is to improve the efficiency and speed of support delivery, aligning defense-industrial capacity with Kyiv’s evolving strategic needs. (Citation: Financial Times)
In parallel, there have been statements from officials in Washington suggesting a cautious stance on the broader Ukraine assistance program. Observers note that the United States has sought to manage and, in some cases, limit the pace and scope of the broader Ukraine-specific aid initiative, underscoring a complex political calculus in how funds are allocated and disbursed. This dynamic informs Kyiv’s planning and its negotiation posture as it seeks to sustain momentum with ally governments while managing domestic fiscal pressures. (Citation: Financial Times)