(LONDON) – Ukrainian forces have stabilised the front line and now possess both a robust defensive posture and a credible deep strike offensive capability, according to analysis from Chatham House associate fellow Timothy Ash. Russian troop losses continue to mount at an estimated rate of 30,000 per month, a figure that now exceeds the Russian Federation’s ability to recruit replacements.<\/p>\n
Speaking on Times Radio’s Frontline programme, Ash, who also serves as a senior sovereign strategist at RBC Blue Bay Asset Management, stated that the Russian dictator finds himself with no clear military solution after four years of failed strategic options. “What is the way forward for Putin here? He has tried all the options over four years. They have failed,” Ash said.<\/p>\n
The assessment comes as European financial support for Ukraine appears set to increase substantially. A 90 billion euro funding package, previously blocked by outgoing Hungarian Prime Minister Viktor Orban, is expected to receive swift approval following the electoral victory of Peter Magyar. The development signals a significant shift in the European Union’s approach to the conflict.<\/p>\n
“Finance is no longer a problem for Ukraine. They are well covered for an extended war,” Ash explained. “The penny or euro cent or fenig has kind of dropped in Europe. There has been a sea change in the last six months in terms of Europe’s willingness to support Ukraine, particularly financially.”<\/p>\n
The funding package provides approximately two years of budgetary coverage for Ukraine, whose annual financing requirements stand at roughly 40 billion euros. Bilateral assistance from non EU member states, including substantial contributions from Norway and Japan, has already ensured Ukraine remains solvent through much of the current year.<\/p>\n
Meanwhile, the Russian economy continues to exhibit significant strain despite a recent US decision to extend sanctions waivers for major Russian oil companies Lukoil and Rosneft. The waiver, implemented following American military action against Iran and subsequent disruptions to global oil markets, allowed Russia to offload approximately 140 million barrels of oil stranded on tankers offshore.<\/p>\n
March export receipts reportedly exceeded the previous year’s figures by over 9 billion dollars, offering what Ash described as “manna from heaven” for the Kremlin. However, underlying economic indicators remain troubling for Moscow. The Russian budget deficit reached approximately 1.5 percent of GDP in the first two months of 2026, nearly hitting the full year target of 1.6 percent within the opening quarter.<\/p>\n
“Russian actions to increase taxes and to cut spending suggest there is a problem,” Ash noted. The central bank has maintained high interest rates, indicating persistent inflation concerns and anxiety over exchange rate stability. Swedish military intelligence chief Thomas Nilson told the Financial Times that official Russian statistics may be significantly manipulated, with actual inflation potentially running at nearly three times the published figures.<\/p>\n
Ukraine has responded to the temporary sanctions relief by intensifying its strategic bombardment of Russian energy infrastructure. A refinery at Kstovo in Nizhny Novgorod Oblast was struck for the second time within a week overnight. Reports suggest that approximately 40 percent of Russian oil export capacity has been degraded through these sustained drone operations.<\/p>\n
“The Ukrainians have figured out that the Americans have been telling them not to hit Russia because they are worried about higher oil prices. Meanwhile, they hit Iran themselves because of their own interests, which pushes oil prices higher, which hurts Ukraine,” Ash observed. “So why not just do what is in our best interests, and our best interests are doing whatever it takes to reduce export receipts from energy products for Russia.”<\/p>\n
The strategic calculus has shifted beyond immediate battlefield concerns toward broader questions of European security architecture. Ash argued that traditional debates regarding NATO expansion have become increasingly irrelevant given the current geopolitical landscape. Questions now centre on whether the United States under the current administration would honour its collective defence commitments.<\/p>\n
“When we have asked for US support under Trump, he has stepped back. He has pulled away. He has stopped financing for Ukraine. There have been suggestions of limitations on military equipment and intelligence,” Ash stated. This perceived unreliability has catalysed European discussions about autonomous defence capabilities, with Ukrainian President Volodymyr Zelensky calling for a homegrown European missile defence system.<\/p>\n
Within this evolving framework, Ukraine’s military expertise has become a valuable commodity. Gulf states, left vulnerable by what Ash characterised as inadequate American protection against Iranian drone attacks, have reportedly signed defence contracts with Ukraine. The agreements cover drone defence technology and expertise, generating revenue for Kyiv while building diplomatic capital in the region.<\/p>\n
“The Ukrainians are the number one globally in terms of drone defence,” Ash said. “The Gulf states were very quick to reach out to Ukraine. It wins friends for Ukraine in that region and earns diplomatic leverage.”<\/p>\n
On the Russian side, Ash noted a palpable sense of confusion and nervousness within the Kremlin regarding American intentions. The toppling of allied regimes, including Nicolas Maduro in Venezuela and mounting pressure on Iran, has reportedly unsettled the Russian dictator.<\/p>\n
“The Russians are a bit confused. They are a bit nervous because they do not really trust the Americans generally, and Putin does not like his allies being toppled,” Ash explained. He drew parallels to the 1980s arms race that contributed to the Soviet Union’s eventual collapse, warning that a new defence spending surge in the West could produce similar outcomes for the modern Russian Federation.<\/p>\n
“Russia is a two trillion dollar economy. It is a fraction of the size of the US economy, less than a tenth, and similar in size relative to the European economy. It just cannot match Western defence spend,” Ash concluded. “We have the historical defence science and industrial memory in the UK, France, Germany, and we have the new innovators, the Turks and the Ukrainians. We have a common interest in having our own missile defence capability, and I think we can do it.”<\/p>\n