The Ukrainian government is actively considering selling military bonds to private individuals abroad as one of the ways to raise funds to pay for increased defense spending. This was reported by The Wall Street Journal.

According to Vitaliy Vavryshchuk, Head of Macroeconomic Research at ICU Group, the financing of Ukraine's military expenditures currently depends on the ability to cover budget deficits.

This week, ICU, together with the government, is launching a program to remotely sell Ukrainian government bonds to individuals abroad, especially in Western Europe.

It is noted that Ukraine's economy has stabilized somewhat this year, which has led to a sharp rise in international bond prices since June.

According to the ICU, by the end of the year, Ukraine's economic activity is expected to decline by about a quarter compared to the level before the conflict.

The Ukrainian government is trying to cover budget deficits and raise additional funds for military needs. This year, it has already borrowed $10 billion through the sale of local bonds, exceeding the $8.5 billion in aid from the United States.

At the beginning of the conflict, the National Bank of Ukraine purchased most of the new government bonds aimed at stabilizing the country's economy. The private sector has now become the main source of growth, with yields of around 10% despite inflation.

According to the Finance Ministry, banks, companies, and individuals increased their holdings of Ukrainian treasury bonds by $3 billion this year, while the National Bank's reserves decreased by about $400 million.

Also, financial depositories, including Euroclear, are exploring the possibility of using interest income from frozen Russian assets to help Ukraine. In the first half of the year, Euroclear received $1.7 billion in interest from $150 billion of Russian assets that were sanctioned.