Ukraine has a backup plan for a lack of financial assistance from the West.

With uncertainty surrounding financial assistance from the US and the EU for the 2024 state budget, Ukraine is working on preparing a plan B, analysts say. They believe that with a reduction in external financing, the state will survive at least the first quarter or even half of the year without sequestration. In fact, this can be called the first stage of plan B.

If it is not possible to solve the issue of financing, Ukraine will have to resort to the second stage – cutting programs and redistributing tax revenues. If this does not enable the government to stay afloat, it will be necessary to resort to the extreme measure of “turning on the printing press.” This, of course, precludes the possibility of low inflation and a stable exchange rate. However, officials and economists alike consider this option extremely unlikely.

Negotiations with partners are still ongoing. Ukraine officials are sure it will be possible to come to agreement with the EU on increased funding for 2024 and to obtain a positive response from the US.