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Ukraine Budget Lifeline at Risk as Biggest Bond Buyer Gets Antsy

Ukraine’s central bank has raised the alarm about the limits of its ability to provide unlimited cash to the government

Uncut sheets of ten hryvnia banknotes

 

Uncut sheets of ten hryvnia banknotes

 

Photographer: Vincent Mundy

Ukraine’s war-battered budget is coming under more strain as the central bank increasingly raises the alarm about the limits of its ability to provide cash through sovereign debt buying. 

The dilemma shows the difficult choices for policy makers in Kyiv as Russian forces have destroyed cities, blockaded the nation’s grain exports and displaced more than 10 million people. The economic fallout has brought budget funding for everything from pensions to military operations to breaking point.