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Ukrainian President Volodymyr Zelensky has dismissed reports suggesting that the government may suspend salaries for soldiers and public sector workers due to delays in a European Union financial package.
The reports come after Hungarian Prime Minister Viktor Orban blocked a proposed European Union (EU) loan worth about €90 billion ($115 billion), ahead of elections scheduled for April.
The first tranche of €45 billion was expected to be released this year, but Zelensky stated that essential government payments still remain unaffected.
Speaking at a press conference in Kyiv, he said salaries, military funding, and pensions were still being paid, stressing that the government was maintaining financial obligations despite external pressures.
“Today, salaries are being paid, the army is funded, and pensions are being disbursed. Everything is paid. I believe we are doing a rather good job.”
Zelensky acknowledged, however, that Ukraine continues to rely heavily on external funding, particularly as it faces major military spending commitments for 2026 and 2027 due to its ongoing war with Russia.
Reports from Bloomberg had suggested that Ukraine could face budgetary shortfalls in the coming months if additional funding is not secured.
Beyond the EU loan delay, Ukraine is also awaiting parliamentary approval for measures tied to International Monetary Fund support, while a North Atlantic Treaty Organisation (NATO)-related funding appeal has yet to yield expected results.
Zelensky warned that delays in financial assistance could create risks ahead of the next winter, particularly as Russia continues to target Ukraine’s energy infrastructure.
“We are getting to work, but this does not constitute a large-scale deployment, as the funds are not yet available.
“This delay therefore poses a risk for the winter. Various initiatives have been undertaken to seek funding.”
