Pensions safe even if Senate bans using American aid for such payments, Ukrainian MP assures

"Pensions are paid at the expense of the unified social contribution," said the chair of the Rada Budget Committee.

“The state budget covers the Pension Fund's deficit and pays pensions to certain categories of pensioners who used to work for the state. Expenditures for the Pension Fund are a protected item of state budget expenditures, they are paid almost immediately after military expenditures, so there will be no problems with pensions, even if direct budgetary assistance from the United States is lower than expected.”

The Senate included a ban on Ukraine's use of U.S. money for pension payments in the supplemental appropriations bill, the news agency reported on Feb. 5. This document has not yet been adopted.

Economy Minister Yulia Svyrydenko told the Financial Times on Dec. 27 that Ukraine may have to postpone payments to civil servants and pension payments to millions of citizens if the EU and the United States do not provide the promised financial assistance in early 2024.

The lack of external support will return the Ukrainian economy to "survival mode" after it began to recover in 2023, with GDP growth estimated by the IMF at 4.5%.

Minister of Social Policy Oksana Zholnovych reported on Nov. 10 that spending on social protection in the 2024 budget is second only to spending on defense and security. In total, almost 470 billion hryvnias ($12.5 billion) is allocated for pensions and social assistance.

President Volodymyr Zelenskyy said on Nov. 15 that it would be difficult for Ukraine to pay social benefits without Western support as all the money Kyiv earns goes to the military.