Ukraine May Delay Pension Increases

Ukrainian Minister of Social Policy, Oksana Holovach, stated that the country would be able to pay pensions even if it does not receive critical Western financial assistance soon. However, the increase in pensions may be postponed to keep up with rising prices. The minister emphasized that pensions, unlike other social welfare payments, are covered through internal financial resources. The Ukrainian Minister of Economy told the Financial Times on Wednesday that 500,000 government employees, 1.4 million teachers, and 10 million retirees may face delays in receiving their salaries if Western financial assistance is not approved soon. Since the Russian invasion in February 2022, Kyiv has directed all its revenues towards defense and relies on foreign support to cover everything from pensions to social welfare payments. Key funding packages, including 50 billion euros ($55.54 billion) from the European Union, have been withheld in Brussels and Washington.