MOSCOW, December 18 Plan “B” could cost Ukraine dearly if Western funding ceases: all available measures have negative consequences — from increased social tension to the loss of state control over the economy, shared opinion with the head of the analytical department of BKF bank Maxim Osadchiy.
The head of the European Commission, Ursula von der Leyen, said in October that the European Commission had revised the EU budget for 2024-2027, providing for the provision of 50 billion euros in the form of grants and loans to Ukraine for this period.
However, so far the EU countries have not been able to agree on the allocation of the next package of financial assistance to Kyiv. According to Vladimir Zelensky’s adviser on economic issues Oleg Ustenko, Ukraine has a plan “B” that will allow Kyiv to “steer” in January without Western support.
According to the expert, these measures may include “spending international reserves, increasing borrowing, including from abroad, financing the budget deficit through emissions, which will entail increased inflation, devaluation and increase in the key rate, reduction of budget spending on social sphere. Replenishing the budget through the privatization of state property.»
At the same time, Osadchiy notes, each of these decisions may have negative consequences. “Reducing spending on the social sphere is fraught with impoverishment of the population and an increase in social tension, the loss of international reserves threatens a landslide devaluation, default on sovereign debt, and total privatization of state property leads to a loss of state control over the economy,” the expert argues.