Fatih Şahin Фатіх Шахін Ukraine, business and international experience — since 2004
War economy

Paying for a war and preparing for accession at the same time

By 2025 external financing to Ukraine was doing two jobs at once, and the second one is the more consequential.

Boat Lviv
Photo: Alex.Starov · Public domain

External financing to Ukraine by 2025 was funding the civilian state and, through the conditions attached to it, rebuilding the machinery of public finance to a standard accession will require.

The two jobs

The immediate job is cash: salaries, pensions, medical care, the functioning of ministries and municipalities, so that domestic revenue can go to defence.

The second job is structural. Disbursement is tied to steps that a candidate country has to complete anyway: public financial management, procurement transparency, tax administration, audit capacity, statistical reporting to European standards.

That means the same money that keeps a school open this month is also building the administrative system Ukraine will need at accession. Two problems, one instrument.

Why the design is sound

Emergency financing that funds only survival leaves nothing behind when it stops. Financing tied to institutional reform leaves a functioning treasury, a procurement system and an audit body regardless of what happens next.

The pressures on it

Donor fatigue, competing crises and domestic politics in contributing states. Every year the financing has been harder to assemble than the year before, and every year it has been assembled.

The observation I would make

Predictability remains worth more than volume. A government that knows what arrives next quarter can plan a school year, a construction season and a hiring round. One that does not holds cash and delays, which costs more than the shortfall itself.

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