Ukraine faces $56 billion budget gap in 2026 as Russian strikes hit economy

Reuters, in a report published by The Economic Times, says Ukraine needs $56 billion to close its 2026 budget gap, including $27 billion for military spending. Russian strikes have shut down industry and businesses, reducing tax revenue, while foreign loans have been delayed. Ukraine and the European Commission say they have identified funds to close this year’s gap, though accelerating EU loan payments could increase budget pressure next year.