Ukraine Awaits EU Funds, Considers Alternative Financing Amidst Global Economic Risks

Ukraine is anticipating the arrival of €90 billion ($104 billion) in aid from the European Union, agreed upon in December, but currently stalled due to opposition from Hungary. If the funds are not received, Ukraine’s National Bank (NBU) is prepared to utilize domestic debt markets and potentially monetize budgetary needs to cover the shortfall, according to NBU Governor Andriy Pyshnyy.

EU Aid Package Faces Obstacles

The EU aid package is crucial for Ukraine’s financial stability, alongside a separate four-year $8 billion aid package from the International Monetary Fund (IMF). However, Hungarian resistance is preventing the release of the €90 billion EU loan. According to recent reports, Ukraine has sufficient funds to operate until the Hungarian elections on April 12th, where a shift in power could potentially unlock the aid.

Alternative Financing Options

In an interview with Bloomberg, Andriy Pyshnyy outlined two primary options should the EU loan remain inaccessible: leveraging the domestic debt market and monetizing budgetary needs. The domestic debt market involves borrowing within Ukraine through government bonds, while monetization refers to printing money to finance government spending. Pyshnyy acknowledged that monetization typically accelerates inflation and weakens the national currency.

Global Economic Risks and Potential Impacts

Pyshnyy also highlighted the potential for increased economic pressure on Ukraine stemming from the escalating conflict in the Middle East. He warned that the situation could worsen Ukraine’s trade balance and drive up energy prices, potentially increasing inflation. An escalation in Iran could divert international attention and reduce the flow of vital weapons to Ukraine.

Rising global oil prices, potentially exacerbated by a change in US policy regarding sanctions on Iranian oil – as suggested by former President Donald Trump – could also benefit Russia’s economy, which is already under pressure from international sanctions. Ukraine’s consumer price index rose to 7.6% year-on-year in February, and Pyshnyy cautioned that the crisis in the Middle East could push this figure up by as much as 0.9 percentage points.

Hungary’s Position and EU Response

Hungarian Prime Minister Viktor Orbán has recently called for the suspension of all sanctions imposed on Russian energy resources. However, European Commission President Ursula von der Leyen has dismissed this possibility, stating it would be a strategic mistake for Europe.

Andriy Pyshnyy: Background

Andriy Hryhorovych Pyshnyy has served as the Governor of the National Bank of Ukraine since October 2022. Prior to this role, he was head of Oschadbank from 2014 to 2022 and a People’s Deputy of Ukraine from 2012 to 2014. He also held various positions at Oschadbank and Ukreximbank earlier in his career, beginning in 2000. He is a member of the National Security and Defense Council of Ukraine since October 25, 2022.

In September 2025, Pyshnyy met with ambassadors from the G7 nations and the European Union to discuss the geopolitical and economic situation and the importance of continued international support for Ukraine’s financial stability.