(Reuters) – As Ukraine deals with the shock wrought by the Russian invasion of its economy, foreign financial aid will be necessary to ensure stability in the bank reserve reserves. Kyrylo Shevchenko was the head of the central bank.

International reserves of the central bank fell from $28.1 million a month ago to $26.8billion as of May 1, 2015.

Shevchenko stated that “We have adequate international reserves, despite all the… government’s foreign debt obligations,” on the NV Business media portal.

We can maintain our reserves at the right level, and increase them with sufficient international financial aid.

Now in its third month of operation, Russia’s incursion on Ukraine has left millions homeless, sent oil and food prices skyrocketing, closed many businesses, and reduced exports.

Shevchenko stated that inflation in terms of annual terms could rise to 15.9% by the end April from 13.7% one month ago. The annual inflation rate could reach 20% at the end.

Shevchenko stated that “in times of war it is impossible to avoid rising costs,” and added, “The central bank will maintain its fixed exchange rate to manage consumer price inflation.”

The country needs more financial aid from the international community to survive the conflict, he said. Ukraine has already received over $4.3 billion of international assistance.

According to him, the Gross Domestic Product is likely to fall by at least one third.

Shevchenko stated that the economy would recover but war losses will still be substantial.

Lidia Kelly reports from Melbourne; Sam Holmes edits