Zelensky urges lawmakers to act as Ukraine funding hangs in balance

KYIV - President Volodymyr Zelensky called on lawmakers to pass key legislation next week to avert a funding crisis, help Ukraine fight the war against Russia, and enact key reforms required for European Union accession.

Due to lagging reforms and slow legislative progress in late 2025 and early 2026, Ukraine missed deadlines to unlock billions from its key lenders, economists said.

With the need for external financing standing at US$52 billion (S$66.87 billion) in 2026 - equivalent to around a quarter of annual economic output - the budget situation is desperate.

“I have a list of key draft laws that are critical for securing funding,” Mr Zelensky said in remarks released on April 3.

They range from strengthening the court system to reforming energy sector procedures.

“I believe that Members of Parliament from all parties must understand the importance of these Bills for Ukraine’s budget,” said Mr Zelensky, who has a majority in Parliament but relations have soured.

Mr David Arakhamia, head of the ruling Servant of the People faction, said lawmakers planned to meet on April 6 to discuss the legislation with the key ministers.

Voting is planned for April 7 and April 8.

Ukraine depends on Western financial support as it fights a bigger and better-equipped enemy.

Since the 2022 invasion, Kyiv has received about US$174 billion in economic aid.

But in 2026, key funding has been stalled after Hungary’s Prime Minister Viktor Orban, who maintains close ties with Moscow, blocked a €90 billion (S$133.48 billion) loan to Ukraine.

By contrast, Russia will benefit from the surge in global oil prices due to the war in Iran.

Economists from several Ukrainian think tanks said the country was critically late with meeting obligations under the EU’s Ukraine Facility programme, failing deadlines on 14 indicators and risking more than US$3.9 billion in financing.

In a March 30 letter to the Speaker, seen by Reuters, EU Enlargement Commissioner Marta Kos said progress on the legislation would send a signal about Kyiv’s commitment to reforms.

The Parliament also failed to pass four laws enabling US$3.35 billion from the World Bank, said the RRR4U consortium of four economic think tanks.

“If the commitments are met, the shortfall will be fully covered,” the consortium said.

“If not, the financial chain will break: the deficit exceeds US$30 billion, and funds will only last until May. Or in the best-case scenario, if parliamentarians finally start voting on the Ukraine Facility legislation, they will last until mid-summer.”

With the war in its fifth year, fatigue and corruption scandals have mounted, and relations between Mr Zelensky’s government and Parliament have soured.

Some lawmakers complain about the lack of communication on key issues, while opposition parties want more representation in the government. REUTERS