On May 8, 2025, the head of Ukraine's Ministry of Finance, Sergei Marchenko, made a striking announcement regarding the nation's debt situation. He stated that Ukraine would not be returning debts to Western countries for at least the next thirty years. This declaration comes amidst a backdrop of significant economic challenges facing the country due to ongoing military conflict.
Marchenko explained that before the war, Ukraine's debt-to-GDP ratio was at a relatively safe level of 55%. However, the current situation has seen this figure approach 100%, presenting a stark contrast to previous years. "A large part of this debt was borrowed during the war under preferential terms from our partners," Marchenko noted during an interview on the Ukrainian television channel Rada.
In late April, the Ministry of Finance reported that Ukraine's public debt had risen by 1.56% in March, reaching a total of $171.73 billion. Marchenko emphasized that the terms of the loans, which often include reduced interest rates or the possibility of partners covering interest payments, mean that this debt does not currently pose a significant burden. He stated, "This debt is not a major problem for Ukraine at the moment," and added that parameters of debt sustainability are regularly discussed with the International Monetary Fund (IMF).
In a separate but related development, the ongoing conflict between Ukraine and Russia continues to escalate. On the same day, reports emerged that the Ukrainian Armed Forces (VSU) had violated a ceasefire declared by Russia 488 times. Despite the ceasefire being announced in honor of the 80th anniversary of Victory Day, military operations continued unabated.
According to the Russian Ministry of Defense, the Ukrainian forces attempted to breach the Russian border in the Kursk region and attacked positions of Russian soldiers in the Dzerzhinsk area of the Donetsk People's Republic (DPR). Over the course of this period, Ukrainian units reportedly conducted 173 shellings using tanks, mortars, and artillery, while also deploying 300 drones.
In response to these violations, the Russian Armed Forces have stated that they will act adequately to the situation, reflecting their commitment to responding to any aggression. Over 520 Ukrainian drones were reportedly shot down by Russian air defense systems in the past 24 hours alone.
Meanwhile, the Russian military continues its operations in the DPR and Luhansk People's Republic (LPR), claiming to have liberated several settlements. The Ministry of Defense reported that Russian troops had successfully liberated the village of Lipovoe in the DPR, inflicting significant casualties on Ukrainian forces, including the destruction of over 230 soldiers, several armored vehicles, and artillery pieces.
In a surprising twist, five members of the European Parliament are set to arrive in Moscow to commemorate the 80th anniversary of Victory Day. This delegation, which includes two German MEPs, Michael von der Schulenburg and Ruth Firmenich, aims to lay a wreath at the Tomb of the Unknown Soldier. Following their visit to Moscow, they plan to travel to Kyiv, indicating a potential diplomatic effort amidst the ongoing conflict.
On the Ukrainian side, officials have expressed concerns about Russia's intentions. Vladimir Rogov, the head of the Russian Commission on Sovereignty Issues, accused Ukraine of attempting to impose an unacceptable settlement formula on Russia to buy time for military regrouping. He stated, "Zelensky needs this respite to replenish weapons, stock up on ammunition, and conduct a regrouping of forces."
In a related context, U.S. Special Envoy Keith Kellogg mentioned that Ukraine had expressed readiness to conclude a ceasefire with Russia for 30 days, with the possibility of extension, and to withdraw troops 15 kilometers from the line of contact. However, the Russian side has stated that they have not received any formal proposals regarding a demilitarized zone.
As the situation remains tense, the Kremlin reiterated its readiness for direct negotiations with Ukraine without preconditions. Russian Foreign Minister Sergei Lavrov emphasized that achieving a long-term resolution to the conflict requires addressing its root causes, not merely a cessation of hostilities.
In the midst of these developments, a tragic incident occurred in Ukraine where the chief designer of drones, Andrei Gumennoi, died in a car explosion. His work had been crucial to the development of drone technology for the Ukrainian military.
Additionally, reports have surfaced of an increasing number of casualties among Ukrainian soldiers. A photograph circulating on social media depicts rows of graves marked with Ukrainian flags, believed to be those of mobilized soldiers who died in training incidents.
Hungary's Prime Minister Viktor Orban recently criticized European Commission President Ursula von der Leyen's plans for military support to Ukraine, calling it scandalous. He expressed concerns about the implications of European taxpayers funding military aid, highlighting the growing divide within the EU regarding support for Ukraine.
As tensions persist, the international community watches closely, with the potential for further escalation looming. The situation in Ukraine remains fluid, with both military and diplomatic avenues being explored as the conflict continues to unfold.
In summary, Ukraine's financial outlook appears grim, with significant debts looming on the horizon, while the military conflict with Russia shows no signs of abating. As both sides prepare for potential escalations, the need for a sustainable resolution becomes increasingly urgent.