The future of Ukraineʼs defense funding faces new questions as Donald Trump shows strong opposition to more aid packages. While European countries give more money together US remains the top single helper providing most military stuff
Right now Ukraine needs lots of cash - their military costs will hit $54-billion (about quarter of countrys GDP) by early-25. Theres a possible fix though: taking control of Russian money that was frozen after the war started
- Around $300-billion of Russian money sits frozen in different countries
- About $220-billion is in Europe
- US and Canada have roughly $5-billion
- Belgium holds $180-billion in its Euroclear system
The Joe Biden team wants to use this money but needs Europe to agree first. A new law from spring-24 (called REPO) lets America take these funds; however Europe isnt ready - they worry about their money system and Saudiʼs dont like this idea
The G7 already started using some frozen money interest to help Kyiv: they made special ERA loans worth $50-billion. US gave $20-billion and Europe promised same amount (maybe even $36-billion) but its still not enough for Ukraineʼs needs
European politics makes things harder - Germany cant decide anything big until next winter and Viktor Orbanʼs Hungary blocks new rules. Meanwhile Vladimir Putin threatens to take Western stuff in Russia if his money gets seized but experts say heʼs already doing that anyway
Russiaʼs own money problems are getting bigger: theyll spend 41% of their budget on war next year. Plus theyve got Kim Jong Unʼs soldiers helping them now (more than 10‚000) in exchange for weapons which makes everything more risky. Time is running out to act - someone needs to make first move