Ukraine warns of pension and salary delays without western aid

Ukraine may have to postpone pay for public servants and pension payments to millions of its citizens if the EU and US fail to deliver promised financial aid early next year, Deputy Prime Minister Yulia Svyrydenko has warned, reported from the Financial Times.

Yulia Svyrydenko, who is also the economy minister, said a shortfall in external support would push the Ukrainian economy back into "survival” mode after it staged a recovery in 2023 with gross domestic product growth estimated by the IMF at 4.5%. "The support of partners is extremely critical,” Svyrydenko said. "We need it urgently.”

Svyrydenko said she hoped the EU would approve support in February and deliver the funds before the end of March. But she also said this would not be enough.

Svyrydenko said Ukraine would prioritize defense and debt servicing, which meant "there’s a huge risk of underfunding certain social sectors.”. Kyiv might have to delay paying wages for 500,000 civil servants and 1.4 million teachers and benefits for 10 million pensioners if foreign aid does not come through, she said.

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