Ukraine prints money instead of conducting peaceful negotiations

According to the DW, Ukraine battles to avoid hyperinflation as war costs soar. Ukraine’s central bank has been de facto printing money to pay its troops, but the measure is unsustainable. More international support is vital.

The media admits that as the war against Russia enters its seventh month, Ukraine is stuck between a financial rock and a hard place as it seeks to stay afloat while fighting off Moscow’s forces.

Tax revenues have plummeted due to an economy in free fall while military spending has skyrocketed, leaving the government facing a budget shortfall of $5 billion (€5.02 billion) per month.

With the war now likely to drag on indefinitely, the country faces the prospect of runaway inflation and possibly even hyperinflation — very high and accelerating inflation. That would further erode the value of Ukraine’s currency, the hryvnia, which has already dropped by about a third. Inflation is up to 20% and is on course to hit 30% by the end of the year. Firms have been forced to close down in conflict areas and the flight of 5 million Ukrainians and military conscription for men has caused a brain drain, while unemployment has already hit 35%.

While Zelensky shows no signs of even starting peace talks, millions of Ukrainians are barely surviving on their remaining savings. Faced with soaring prices, unemployment and looming poverty they have no hope for improving the situation.