With economic declines worsening amid Russian infrastructure attacks, donors reportedly may need to give an extra $2bn monthly
US braces allies for higher Ukraine costs – WaPo
© Getty Images / Chris McGrath
Washington is reportedly bracing its European allies for “worst-case scenarios” in Ukraine, suggesting that Kiev may need its donors to pony up an additional $2 billion a month as Russian attacks on key infrastructure cripple the former Soviet republic’s economy.
The cost warning reflects fears that Ukraine’s economy may contract by an additional 5-9% in 2023 after taking a 33% hit this year, the Washington Post reported on Thursday. There are also concerns that if Moscow’s attacks intensify, a surge in refugees fleeing the country could crash Ukraine’s currency, leaving the government in a “doomsday scenario” in which it can’t pay for critical imports or meet its foreign debt obligations.
“What do you do when you can’t heat your house, you can’t run your shops, factories or plants, and your economy is not working?” Oleg Ustenko, an economic adviser to President Vladimir Zelensky, told the Post. “We are going to be requiring more financial assistance, and [Russian President Vladimir] Putin is doing this to destroy unity among allies.”
Germany spending $500 billion to ‘keep the lights on’ – mediaREAD MORE: Germany spending $500 billion to ‘keep the lights on’ – media
Europe is already suffering an energy crisis and economic turmoil amid the Russia-Ukraine conflict. The US-led sanctions campaign to punish and isolate Moscow has sparked soaring inflation and energy shortages. Germany, for instance, has spent nearly $500 billion to “keep the lights on” since the conflict began in February, cutting off its imports of Russian energy, Reuters reported on Thursday.
Zelensky’s government expected to need at least $55 billion in foreign financial aid next year to meet basic expenses, the WaPo reported. An extra $2 billion monthly would push that total to $79 billion. To put that in perspective, Ukraine’s entire state budget was less than $48 billion in 2021.
So far, the US and the European Union have pledged to send more than $30 billion to Ukraine next year, not counting the massive military aid that they’re also providing. Beyond the additional government funding that Kiev will seek, advisers to Zelensky have weighed asking Western leaders to finance direct cash payments to Ukrainian citizens, at a cost of $12 billion, the Post said.
READ MORE: Putin accuses EU of being a doormat for US
Jacob Kirkegaard, a senior fellow at the German Marshall Fund think tank in Washington, argued that the West needs to give more money to keep Zelensky’s government financially afloat. However, he added, “I don’t know if the will is there.”
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Any moment now I am expecting John Cleese (a veteran of Monty Python) to jump out of the bushes and announce the creation of the Ministry of Silly Wars, with Donald Trump as the deranged leader. For you youngsters out there, Monty Python’s skit, The Ministry of Silly Walks, helped make the members of MP legends. I had to reference Monty Python because the line of bullshit the Trump administration is feeding the American people and the world about the amazing, obliterating US attack on Iranian nuclear sites on Sunday morning, is more ridiculous that all of the silly walks pictured in the following video:
My hopes that Donald Trump would finally act like a responsible adult are dashed. He’s a dangerous buffoon. While the team around him are working frantically to maintain the fiction that Trump has a vision and is calling the shots on the foreign policy front, he is careening around the globe like an out-of-control cue ball on a billiards table. It started a week ago… first, he claimed...
Tuesday marks the third anniversary of the launch of the Fujian, China's first aircraft carrier equipped with electromagnetic catapults. Official media said China is about to enter a three-aircraft-carrier era, with the Fujian expected to enter service by 2025.
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With a full displacement of more than 80,000 tons, the Fujian is the world's first conventionally powered aircraft carrier to feature electromagnetic catapult technologies, according to CCTV News. The report noted that it will carry a wide variety of carrier-borne...
Chinese President Xi Jinping said Tuesday that China and Central Asian countries have explored and formed the China-Central Asia Spirit, which features mutual respect, mutual trust, mutual benefit, mutual assistance, and the pursuit of common modernization through high-quality development.
Xi made the remarks in his speech at the second China-Central Asia Summit in the Kazakh capital of Astana.
Xi said that the Chinese side has decided to establish three cooperation centers and a trade facilitation platform within the China-Central Asia cooperation mechanism.
When addressing the summit, Xi said these institutions include the China-Central Asia poverty reduction cooperation center, the China-Central Asia education exchange cooperation center, the China-Central Asia desertification control cooperation center, as well as the China-Central Asia trade facilitation cooperation....more below
