Kyiv/London - Kyiv is seeking billions to cover its budget deficit even as questions linger over the cost of rebuilding the country for following Russia's invasion.

In September the World Bank estimated rebuilding the country could cost nearly $350 billion. That was before major bombing campaigns by Russia launched in October, and experts predict this number will multiply when the lender publishes its updated assessment in April.

After a 30% contraction in its economy in 2022, Ukraine will need $38 billion by the end of year to cover its budget deficit alone.

"We need these funds for critical costs: funding of salaries and pensions, education and medicine," Prime Minister Denys Shmyhal told a government meeting this week.

"For economic stability and a successful fight against the enemy, Ukraine needs more help."

On top of that, Kyiv said it will need $17 billion this year for urgent energy repairs and de-mining and rebuilding some of its critical infrastructure.

While the EU is expected to provide the lion's share of funds to cover the budget deficit at $18 billion, and Washington a further $10 billion, Kiev has yet to identify sources of funding to meet those additional costs.

It is now pressing for a multi-billion dollar borrowing program from the International Monetary Fund, with the fund meeting the country's officials in Warsaw this week.

The fund approved a four-month monitoring program for Ukraine in December aimed at maintaining economic stability and helping promote donor financing, which should eventually pave the way towards "a possible full-fledged IMF-supported program", it said.

Arup Banerji, World Bank country director for Ukraine, said the nation will need continued financial support going forward.

"An economically weak Ukraine is also militarily weak. If there's hyperinflation, the economy's going under," said Banerji.

"Supporting Ukraine now is critical to avoid a devastating humanitarian crisis and to strengthen Ukraine for what it's doing for the rest of the world."
-Reuters