Ukraine Government Raises $270 Million Through Sale Of War Bonds To Fund Its Fight Against Russia

The government of Ukraine has generated up to 8.14 billion Ukrainian hryvnia ($270 million) through selling war bonds, according to the ministry. The bonds will have an 11 percent yield and a one-year maturity, according to a tweet from the country’s finance minister.

“The proceeds from the bonds will be used to meet the needs of the Armed Forces of Ukraine and to ensure the uninterrupted provision of the state’s financial needs under the war,” the ministry tweeted a day earlier. The website of the ministry is currently not operational potentially because of cyber-attacks from Russian hackers.

The nominal value per bond is 1,000 hryvnia ($33).

The Ukrainian government also issued bonds with a two-month maturity and a ten per cent interest, which helped the administration raise an additional fund of $7 million.

According to a Wall Street Journal report based on information obtained from a telephone discussion between bond investors and a Ukrainian official, a number of dealers, including Citigroup, Austria’s Raiffeisen Bank, and Budapest-based OTP Bank Nyrt, were among the banks that sold the bonds on behalf of the government.

Concerned American and other banks made no remarks on the bond sales.

Since Russia’s invasion of Ukraine began last week, Ukraine’s military forces have mostly been able to repel Russian troops.

So far, Russia’s smaller neighbour has defended and held control of key cities, putting a stop to Russia’s advance on Kyiv, the capital.

Despite Ukraine’s remarkable tenacity, many experts believe Russia will win the conflict due to Moscow’s vast military resources in terms of guns and ammunition, as well as the number of infantry troops at its disposal. Ukraine’s military expenditure in 2020 was $5.92 billion, according to World Bank data, a fraction of Russia’s $61.71 billion.

Ukraine has trying to raise funds in a number of ways as the fight intensifies and a Russian convoy approaches Kyiv.

On Saturday, the official Twitter account of the Ukrainian government revealed addresses for two crypto wallets, one taking only bitcoin and the other ether and tether, a currency that tracks the value of the US dollar.

As of Sunday, such wallets have amassed $10.2 million in bitcoin, according to statistics from blockchain analytics firm Elliptic. This is in addition to the millions of dollars in digital currency donated to non-governmental organisations that aid the Ukrainian military.

(Adapted from CNBC.com)



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