Ukrainian Deputy Finance Minister Olga Zykova. (Government of Ukraine)

At an international business forum on Thursday in Luxembourg dedicated to the Rapid Recovery of Ukraine, Ukrainian Deputy Finance Minister Olga Zykova said that Kiev requires another $10 billion in international financial assistance from allies to cover its budget deficit and ensure stable economic development.

"Currently, the Ukrainian Government has confirmation of financing from the EU and the US of about USD 30 billion for 2023. However, there is still a need for another USD 10 billion. And here we count on help from other countries and international financial organizations, in particular the IMF [International Monetary Fund]," Zykova said.

She added that despite honing budget expenditures and raising the tax and customs revenue, Ukraine still needs monthly financial assistance of $3 billion.

On January 24, Ukrainian Prime Minister Denys Shmyhal said that the G7 has established a multi-donor mechanism they called Financial Ramstein.

According to Shmyhal, Financial Ramstein will operate in three main areas: continuous short-term and long-term support to Ukraine, international financing and coordination of reforms, and development of the private sector.

The following day, reports came out that Shmyhal may be next to be dismissed amid a major government shakeup announced by President Volodymyr Zelensky.

Zelensky indicated on Monday that there would be changes to the cabinet after Ukrainian media reported on irregularities in military procurement schemes. Several senior officials and governors have since been fired or said they have quit.

The announcement came a day after Vasyl Lozynsky, the acting minister for regional development and Shmyhal’s confidant, was arrested on bribery charges.

Ukrainian daily Strana.ua quoted an unnamed government official as saying that Lozynsky’s ouster did not result well for the Prime Minister.

"His case will be used to target the premier or maybe even to have Shmyhal removed from office," the official told the newspaper.

Shmyhal has reportedly sought to distance himself from the arrested minister, whom he appointed as his first deputy after taking office in 2020. Shmyhal’s removal would lead to the government's resignation and allow Zelensky to pick a new Prime Minister, subject to parliamentary approval.