This risks resulting in a social default as the government is not able to fulfill its social obligations. We do not know for certain that there will be enough funds in the budget for social expenses under such circumstances. Thus, the government was already in a critical situation just prior to the heating season. Added to this is regular shelling of Ukraine’s energy infrastructure, which is of vital importance for the country and needs a tremendous amount of funds for fixing anddefense. The board chair of Naftogaz of Ukraine, Yurii Vitrenko, claimed on Facebook that we will have to import gas at the price of 100 UAH per cubic metre (2.5 EUR per cubic metre), whereas heating companies sell gas to people at the price of 7.4 UAH per cubic metre (0.2 EUR per cubic metre). At the same time, The Wall Street Journal reports that tax revenues in Ukraine provide only 40% of government spending, most of which goes to defense.Īpart from that, the country lacks gas as it already had before. As reported by the head of the Ministry of Finance, Serhii Marchenko, Ukraine received 4.7 billion USDin August and 2 billion USD in September. The international aid also arrives later than it should. According to data by the Ministry of Finance, the income of the state budget general fund decreased to 156 billion UAH (3.9 billion EUR) in September, whereas it was 30% higher in August, and 8% more in July. The financial situation in Ukraine is continually getting worse. However, every month it is becoming more and more difficult to do so. Without doubt, state social payments are secure and the state takes measures to pay salaries, pensions and social assistance on time. Moreover, people are not concerned as much about rising expenses than the risk of losing those modest payments and subsidies they currently receive. However, since the war started, the situation has become even worse, especially with the drastic rise of prices and inflation. Life has always been difficult for elderly people in Ukraine.
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