Ukraine War: Russia Advances in Donetsk as Kyiv Faces Financial Strain and Belarus Tensions

The conflict between Russia and Ukraine remains intense as Moscow reports new territorial gains in eastern Ukraine, while Kyiv struggles with mounting financial pressure and warns Belarus over upcoming military drills.

Russia Tightens Grip on Donetsk, Ukraine Under Pressure

On August 23, Russia’s Defense Ministry announced control over two additional settlements in the Donetsk region — Sredneye and Kleban-Byk. According to AFP, Kleban-Byk is considered a key defensive point on the route to Kramatorsk, a vital Ukrainian logistics hub in the east.

A day earlier, Russian forces claimed to have captured three more settlements in the same area. These successive gains indicate that Moscow is applying significant pressure on Ukrainian defenses, particularly near Pokrovsk, a city that previously housed around 60,000 residents. Analysts suggest Russia is attempting to encircle Ukrainian troops positioned in this sector.

Within the past 24 hours, Moscow reported intercepting 160 Ukrainian drones (UAVs) and striking 143 military infrastructure sites. Russia also accused Ukraine of carrying out a drone attack on Volgograd, injuring three people. Meanwhile, Ukraine stated it had shot down 49 Russian Shahed drones and launched strikes on railway infrastructure in Rostov and Volgograd, disrupting nearly 40 train services.

However, Ukraine suffered a significant loss when a MiG-29 fighter jet pilot was killed during landing after completing a combat mission on August 23. The Ukrainian Air Force confirmed the death of Major Serhii Bondar and said the cause is under investigation.

Kyiv Issues Warning Over Russia-Belarus Joint Drills

Ukraine’s Foreign Ministry has warned Belarus about potential provocations during the upcoming joint military exercise “Zapad,” scheduled for September 12–16.

Kyiv recalled that previous Zapad drills in 2021 coincided with Russia’s large-scale troop build-up near Ukraine’s borders ahead of the invasion in 2022. Ukraine urged Minsk to refrain from any actions that could escalate tensions and called on European partners to remain vigilant.

Belarusian President Alexander Lukashenko dismissed claims that the exercise would serve as a pretext for aggression against neighboring countries, calling such suggestions “completely absurd.” According to Belarus’s Defense Ministry, Zapad 2025 will include scenarios involving nuclear weapons and Oreshnik medium-range hypersonic ballistic missiles developed by Russia.

Financial Pressures Mount as War Drags On

In addition to military challenges, Kyiv faces severe budgetary strain. Ukraine’s Finance Ministry stated that the country will require $74.8 billion in 2026–2027 to sustain government spending if the war continues — yet half of that amount has not been secured.

Current projections suggest Ukraine will need $35 billion in 2026 and $30 billion in 2027 from international partners, but negotiations are ongoing. For 2025, Ukraine expects $54 billion in aid, of which $24 billion has already been received.

Data from the Kyiv School of Economics (KSE) shows that in Q1 2025, nearly 75% of the national budget — approximately $21 billion out of $28 billion — was allocated to defense and security, underscoring the heavy financial toll of the prolonged conflict.