EXPLAINER: Can Ukraine pay for war without wrecking economy?
Ukraine has won victories on the battlefield against Russia but faces a looming challenge on the economic front
FRANKFURT, Germany (AP) — Even as Ukraine celebrates recent battlefield victories, its government faces a looming challenge on the financial front: how to pay the enormous cost of the war effort without triggering out-of-control price spikes for ordinary people or piling up debt that could hamper postwar reconstruction.
The struggle is finding loans or donations to cover a massive budget deficit for next year — and do it without using central bank bailouts that risk wrecking Ukraine's currency, the hryvnia.
Economists working with the government say that if Ukraine can shore up its finances through the end of next year, it is Russia that could find itself in financial trouble if a proposed oil price cap by the U.S., European Union and allies saps Moscow's earnings.
Here are key facts about Ukraine's economic battle against Russia:
