In November, Ukraine may face difficulties in paying salaries to officials and state employees if the United States does not approve a new financial aid package, The Wall Street Journal reports. This situation is connected with the exclusion of aid to Ukraine from the law on the temporary budget by Congress.
Secretary of State Blinken warned Senate Minority Leader Mitch McConnell of the possibility of a "serious economic and political shock" to Ukraine if Congress cut off aid to Kyiv in the midst of a counteroffensive.
The United States and other donor countries finance the salaries of 150,000 Ukrainian civil servants and more than half a million teachers, professors and school employees, as well as Ukraine's public spending.
Ukraine's Ministry of Finance may face difficulties as early as November, and the government will be forced to cut spending on salaries or take out new loans.
USAID may provide $1.15 billion to Ukraine in October through the World Bank, but this depends on the country proving that it has "properly spent the previous transfer." The prospects for future payments remain unclear.
In the absence of new funding, Ukraine may be forced to use the deferred funds to get through November and December, but in 2024 "the picture will become even bleaker."
The European Union and other major economies, including Japan, may also increase assistance to Ukraine, but the country will have to return to the practice of printing money, which could cause inflation.
"Nevertheless, American financial and military aid, which the EU cannot match, is seen as a barometer of the West's ability to continue to support the war," the article says.