Ukraine is insolvent: Moscow

Moscow 15 August : Ukraine has lost its financial independence since it is unable to meet its obligations towards its citizens without Western assistance, Russian State Duma Speaker Vyacheslav Volodin wrote on Monday, reports in the media stated.

The deficit for the month of July is $5 billion, Volodin reminded, RT reported "Ukraine is bankrupt" he said.The same figures were published on Friday by the Wall Street Journal.

According to the speakers view, "without the help of Washington and Brussels, Kiev can no longer meet its obligations to its citizens", RT reported "Ukraine is now in financial trouble," Volodin concluded.On Monday the Ukrainian government announced a new draft legislation to end preferential taxation of fuel.

A note on Radas site states that "there is a severe deficit of funds to finance the industry of roads." The law is set to provide "during the time of martial law" conditions "for the proper functioning of the economy" and increase revenue to the budget through excise duty.

In an interview with RBC Ukraine, Finance Minister Sergey Marchenko said that next years budget would be "extremely tight" due to "war conditions." "There will be no expense that are not examined," he said, RT said.

According to Oleg Ustenko, the presidents advisor on economic issues, the deficit in the state budget is expected to grow to $50 billion by the close of this year.This is around 30-35% of the GDP of the country, he said in a interview on TV last month, noting that "this is a result of conflict." .