Ukraine faces a significant funding gap of approximately €69 billion next year, primarily due to the costs associated with defense and maintaining essential government services. In response, the European Union is urging Ukraine to implement the reforms it has already agreed upon to access the financial assistance that has been approved, before seeking additional funding for 2027.
Currently, the EU’s priority is to release funds already committed under its €90 billion support loan for the 2026–27 period. Out of the €45 billion allocated for 2026, only about €15 billion has been disbursed so far. The disbursement of further payments is contingent upon Ukraine’s implementation of these agreed reforms, which the EU is pressing the Ukrainian government and institutions to expedite.
In addition to the EU’s support, Ukraine is looking at other potential financial solutions to address its shortfall. One proposal involves urging European countries to utilize frozen Russian central bank assets to help finance its wartime needs. However, this suggestion has encountered opposition from some European governments, mainly due to legal and financial concerns, with Belgium holding a significant portion of these assets.
The EU, alongside the International Monetary Fund, is actively assessing Ukraine’s projected financial requirements and exploring possible solutions to bridge the expected gap. Meanwhile, discussions are ongoing regarding Ukraine’s future financing needs, but the EU remains focused on ensuring the conditions attached to current assistance are fulfilled.