New Ukraine Prime Minister warns of deep budget cuts without aid - National Post
Sergii Koretskyi in Kyiv on Sept. 12. Photo by Andrew Kravchenko /BloombergArticle content(Bloomberg) — Ukraine faces sweeping cuts to its war-ravaged budget unless lawmakers adopt unpopular measures needed to access billions in western aid ahead of winter, according to its new prime minister.
A months-long deadlock in parliament has already delayed about $4 billion in European Union assistance that was due to arrive in the third quarter, Sergii Koretskyi told Bloomberg News. He described the situation of Ukraine’s public finances as “close to critical” in separate remarks on Telegram on Monday.
The risk of a funding crunch has emerged as the first key test for Koretskyi, a former energy-sector executive, who was picked by President Volodymyr Zelenskyy two months ago to prepare Ukraine for what’s likely to be the most difficult winter since the start of Russia’s full-scale invasion.
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Lawmakers’ resistance to backing reforms demanded by the EU and the International Monetary Fund, Ukraine’s two biggest donors, follows Kyiv’s admission that it was facing an additional $27 billion defense budget shortfall for this year due to rising costs of war.
“I see this as a lack of awareness of the scale of the problem,” Koretskyi, 48, said in Kyiv in his first interview with international media since taking office. “This budget is not elastic. So I want to tell you in advance: no. You need to vote. You need to move forward.”
People walk past a shopping centre on fire following Russian strikes in Kyiv on May 24, 2026. Russia launched among its heaviest ever strikes on Ukraine over the weekend. Photo by Roman PILIPEY/AFP via Getty ImagesArticle contentAt the same time, Koretskyi urged international partners to reduce funding uncertainty by making medium- and long-term financial commitments for Ukraine. Zelenskyy has separately called on the EU to accelerate some payments from the bloc’s €90 billion ($104 billion) loan earmarked for next year due to growing budget difficulties, prompting questions from western allies.
Koretskyi said that Ukraine now often has to use costly missiles to shoot down more advanced Russian Shahed drones. That’s one of the reasons why the bill for the war, currently in its fifth year, continues to climb, he said.
