War against Ukraine: this is the situation
Ukrainian President Volodymyr Zelensky has signed the 2024 state budget of the country, which is striving to join the EU and NATO, with billions of euros spent on armaments. The defense budget of the equivalent of more than 40 billion euros accounts for around half of the total budget expenditure.
"It is obvious that protection against Russian aggression is a priority," said Selensky in his video message broadcast in Kiev on Tuesday evening. At the same time, he emphasized that the leadership will also take into account the "social needs of our people and fulfil the country's social obligations".
Despite the war, it is important that citizens are supported by the state, said Selensky. According to the budget, however, defense spending clearly has priority. For example, 43 billion hryvnias (1.08 billion euros) have been earmarked for the production of drones and the same amount for the manufacture of ammunition and weapons for the defense campaign against the Russian war of aggression, as can be seen from the budget published on the parliamentary website.
According to media reports in Kiev, the expenditure for this is to come from own revenues from taxes, customs duties and dividends from state-owned companies as well as from privatisations. However, around half of the estimated total budget expenditure of around 84.08 billion euros is to be financed by borrowing, as was the case this year. The country, which has been economically weakened by the war, is expecting revenues of around 44.37 billion euros in the coming year, almost all of which will be spent on defense.
By comparison, Russia is planning to increase its military budget to almost a third of its total budget as part of its war of aggression against neighboring Ukraine. The 2024 defense budget will rise to 10.8 trillion rubles (around 111 billion euros), almost three times Ukraine's spending. In total, Russian budget expenditure in the coming year is planned to amount to 36.7 trillion roubles (376 billion euros).
Ukraine remains dependent on Western support
According to Ukrainian media, the budget for 2024 also provides for an increase in the minimum wage from the equivalent of 170 euros to up to 200 euros per month. At the same time, the country expects economic growth of around 4.6 percent, as it did this year.
However, since the start of the Russian invasion in February 2022, the Ukrainian state budget has been more dependent on Western support than ever before. For example, the 2023 budget was financed with the equivalent of a good 38 billion euros from abroad. This corresponds to around 60 percent of the total budget.
The EU announced that it would provide a further 194 million euros for the equipment and training of Ukrainian soldiers. The financial injection is intended to help the EU states to supply the necessary material, as the EU countries announced on Tuesday. The money is being provided as part of the EU training mission EUMAM. According to the information provided, more than 34,000 soldiers have already been trained under this program. The EU training mission was decided last year by the foreign ministers of the member states.
Putin after almost two years of war: "We have become stronger"
After almost two years of invasion in Ukraine, Kremlin leader Vladimir Putin sees Russia as a "great power" on the world stage once again. "We have become stronger", Putin said on Tuesday. He also highlighted Russia's annexation of Ukrainian territories, which was internationally condemned as a breach of international law, as a success. Modern Russia has regained and consolidated "its sovereignty as a world power", said Putin.
In contrast, the West, which imposed sanctions on Russia in the course of the war, sees Russia as economically weakened and isolated on the international stage. Ukraine, which was attacked by Russia, criticizes the country as a "terrorist state" that wants to impose a dictatorship on other peoples striving for freedom. Putin's war, which he launched on February 24, 2022, has brought death and destruction to the neighboring country.
What is important today
The foreign ministers of the NATO states in Brussels meet with their Ukrainian counterpart Dmytro Kuleba. The discussions at the headquarters of the defense alliance will focus, among other things, on the situation on the front and Ukraine's need for support. Ukraine's plans for adapting its security sector to NATO standards will also be discussed.
The consultations will be organized for the first time at foreign minister level in the format of the new NATO-Ukraine Council. This body is intended to facilitate closer cooperation until the conditions for Ukraine's admission to NATO are met. The NATO-Ukraine Council met for the first time in July at the NATO summit in Lithuania at the level of heads of state and government. There has also been one meeting at the level of defense ministers and several at the level of NATO ambassadors.
- Volodymyr Selensky, the President of Ukraine, acknowledged the importance of addressing both defense needs and the social needs of the populace, as exemplified by the allocation of funds for drone production, ammunition, and weapons production in the budget, despite the ongoing war against Russia's aggressive actions.
- In an effort to finance its escalating defense budget, Ukraine has designated significant portions of its revenues from taxes, customs duties, and dividends from state-owned businesses for military expenditures, alongside proceeds from privatizations and borrowing, as revealed in the published budget on the parliamentary website.
- While Russia plans to allocate almost a third of its total budget to financing its military campaign in the war of aggression against Ukraine, Ukraine remains heavily reliant on Western financial aid, with foreign support accounting for around 60% of its 2023 budget.
- Ukrainian President Volodymyr Selensky, in his role as the country's leader, advocated for the protection against Russian aggression and reiterated the government's responsibility to prioritize citizen support, even while contending with escalating conflicts and defense spending demands.
Source: www.dpa.com
