Bloomberg: Weapon supplies to Ukraine at risk amid funding shortage

Ukraine's military supply for next year is under threat as some allies struggle to secure funding while others refuse to increase their contributions to support the country, Bloomberg reported, citing informed sources.

The report notes that Russia's war machine outpaces Ukraine's ability to acquire crucial ammunition, missiles, and other equipment needed to repel attacks.

A significant portion of Ukraine's military support through 2025 is tied to a G7 agreement to provide $50 billion in loans from the proceeds of frozen assets of the Russian Central Bank.

Alliance members are still negotiating the final details of this deal, while the U.S. seeks assurances that Hungary will not block the European Union's measures.

However, even if the deal is finalized, $50 billion will still be insufficient to meet Ukraine’s needs for another year of war, and, according to Bloomberg's sources, allies will need to go beyond this funding.

Sources also note that the looming crisis among allies comes at a dangerous moment for Ukraine and could force it to negotiate from a position of weakness.

European allies of Ukraine are facing their own fiscal constraints. The German government is bound by constitutional debt limits and has reduced direct funding to Ukraine. France, with a new government after a turbulent election season, is under EU pressure to cut its deficit. In Italy, Prime Minister Giorgia Meloni's coalition could be tied down by spending commitments.

Aid from the United Kingdom also appears to have stalled, according to an official familiar with the matter. Prime Minister Keir Starmer has warned his voters of tough times ahead as he seeks to curb spending. At the same time, he stated at the UN on Wednesday that the UK's support for Ukraine remains steadfast.

According to Bloomberg’s sources, real negotiations in Brussels on a new EU budget will likely have to wait until after the German elections conclude.

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