With War Unresolved, Ukraine’s Debt Nears 95% of GDP – $180 Billion

Ukraine's public debt has reached a historic high of $180 billion, according to newly released data from the Ministry of Finance — a sharp increase driven by wartime spending, reconstruction efforts, and continued foreign borrowing.

The figure represents nearly 95% of the country's projected GDP for 2025, underlining the heavy financial toll the ongoing conflict with Russia continues to exact on the Ukrainian economy. The debt includes both domestic borrowing and external obligations, the latter of which make up a growing share due to generous, though costly, international aid.

In the first half of 2025 alone, Ukraine received an estimated $27 billion in financial assistance from Western partners, primarily from the United States, the European Union, and the International Monetary Fund (IMF). Much of this has come in the form of low-interest loans, rather than grants, which has significantly increased Kyiv's debt burden.

Speaking at a press briefing, Finance Minister Serhiy Marchenko acknowledged the growing risks but emphasized that the debt remains "manageable in the short term” due to deferred interest payments, partial restructuring agreements, and continued Western backing.

"We are not facing default,” Marchenko said. "But we are fully aware of the scale of the challenge. Debt sustainability will be a defining issue for Ukraine's postwar future.”

Economists warn that although Ukraine has avoided financial collapse so far, the long-term trajectory is unsustainablewithout a clear plan for economic revival, private investment, and eventual debt relief. With major parts of the country's industrial base still under threat or damaged, and reconstruction needs estimated to exceed $500 billion, Ukraine will face difficult fiscal decisions in the years to come.

Meanwhile, negotiations with some international creditors over potential partial debt forgiveness or long-term restructuring have quietly resumed, according to sources familiar with the matter.

The IMF is expected to publish its updated assessment of Ukraine's debt sustainability next month. Until then, Kyiv will continue to walk a tightrope — juggling national survival with the mounting weight of financial obligation.