ADVERTISEMENT
LIVE DESK·Global markets desk·Last updated 14s ago
ADVERTISEMENT
Markets/ForexArticle

Ex-Ukraine defense chief warns of gradual war decline amid strategic gaps

Former defense minister Mykhailo Fedorov says Ukraine risks falling behind unless it adopts a cohesive victory plan, citing corruption, innovation gaps and stalled frontline advances.

SL
Sophie Laurent · FX & Rates Desk · 29 Aug 2026 · 22:37 · 2 min read
Share
Ex-Ukraine defense chief warns of gradual war decline amid strategic gaps

Ukraine risks losing the war against Russia unless it quickly implements a unified strategy to reverse recent battlefield setbacks, former Defense Minister Mykhailo Fedorov said in an interview with Reuters.

Fedorov, dismissed six months after his appointment, warned that Ukraine has only a few months left to shift the trajectory of the 4.5-year conflict. He cited a lack of overarching vision for victory, entrenched corruption, inefficiencies in state institutions and resistance to reforms as key obstacles. Russia has made incremental gains in critical areas such as the fortified belt in eastern Donetsk region, even as its broader 1,200-kilometer frontline advance has largely stalled this year.

The Ukrainian presidential administration defended Fedorov’s tenure, stating his military leadership had been effective and that only his personal status had changed since his dismissal. Fedorov, 35, was removed after initiating reforms in procurement and mobilization that clashed with military leadership and political rivals.

Euro / US Dollar

EURUSD
Full profile →
1.1587▲ 0.00%
As of 29/08/2026, 09:39:14

In a Monday discussion in Kyiv, he emphasized the urgent need for domestically produced autonomous AI-driven drones, low-cost interceptors against Russian air strikes and a domestic ballistic missile program. Ukrainian manufacturers are developing these technologies, but their deployment remains uncoordinated, limiting battlefield impact. Fedorov proposed a vision for a frontline networked with electronic sensors and drone systems to minimize human exposure, stating that existing technologies could halt Russian advances if deployed systematically.

He also criticized the Defense Ministry’s structure, alleging that department heads were appointed at the behest of arms manufacturers to serve corporate interests. Fedorov did not name the companies involved. Earlier this week, he became the first senior official to publicly call for elections during wartime, citing a structural government crisis. President Volodymyr Zelenskiy rejected the proposal, warning that elections could destabilize the war effort. Ukraine has been under martial law since Russia’s invasion in February 2022, suspending elections for security reasons. Zelenskiy suggested external actors may have influenced Fedorov’s stance, a claim Fedorov denied.

Despite logistical challenges posed by millions of displaced citizens and occupied territories, Fedorov expressed confidence that Ukraine could find innovative ways to hold elections. He declined to say whether he would run for president.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
ADVERTISEMENT
Share this story
SL
Written by
Sophie Laurent
FX & Rates Desk

Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.

More from Sophie Laurent →
ADVERTISEMENT
Novara — A Smarter Way to Access Global Markets
ADVERTISEMENT