Ukraine’s Economy Will Crumble Without More Aid

During the last several weeks, international and Ukrainian economists’ and policymakers’ discussions have been largely focused on a “Marshall Plan” for Ukraine focusing on the technical issues around reconstruction, from conditionalities on anti-corruption to the green agenda.

But, as a European friend of mine, close to policymaking circles, noted, “Talking about Ukraine’s reconstruction is important to build confidence and give Ukrainians hope. But it is also cheap.”

The West is making generous promises, but the actual delivery is disappointingly slow. In total, Ukraine has now been promised more than 31 billion euros in budgetary support by the most important donors, according to calculations of the Kiel Institute for the World Economy, which tracks pledged financial assistance to Ukraine. But only about 7.6 billion euros have actually been disbursed between February and June 28. Only in late June-early July did the inflows start…

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