Ukraine recorded inflation of 21.5% in June, despite the central bank doubling interest rates to 25% since the start of June. Inflationary pressures in Ukraine are extreme as the government struggles to fund the war. Tax receipts collapsed by roughly 80%, and the country’s exports declined to 25% due to Russia’s naval blockade. The country’s domestic capital market withered, while external markets are not accessible and are increasingly under scrutiny again as state-owned gas company Naftogaz sought to delay its bond payments. Analysts say that move brings the sovereign a step closer to default. Officials have already begun to explore a potential debt restructuring, especially as the payment schedule becomes heavier later in the summer.