Ukraine has just achieved a stunning success on the battlefield in the Kharkiv counteroffensive, showing that it can win the war. However, we see a growing risk of a major setback on the economic front if donor disbursements continue to be slow and unpredictable and predominantly coming as loans rather than grants. Such a setback – posing a further risk to macroeconomic stability, weakening the currency and driving inflation higher – could make it difficult for Ukraine to win the war. It would be a completely unnecessary setback, since it can be easily avoided by clearer upfront commitments by donors.
<span class=”authors”>By Jacob Nell, Olena Bilan, Torbjorn Becker, Yuriy Gorodnichenko, Tymofiy Mylovanov and Nataliia Shapoval</span>
