The European Commission has determined that Ukraine’s financial and defence requirements for 2026 are fully covered, a month after Kyiv disclosed a $27 billion (€23.92 billion) shortfall in its defence ministry that took the EU by surprise.
“Today, through coordinated joint efforts, we have identified the means to cover Ukraine’s budget and defence needs for 2026,” the Commission said in a statement shared by President Ursula von der Leyen on Thursday.
“We have also reconfirmed the steps needed to ensure their timely release.”
This closes a debate that began in late August when Ukrainian President Volodymyr Zelenskyy urged allies to fill the $27 billion gap, warning that essential weapons deliveries were at risk.
“We need more money, much more,” Zelenskyy said.
Since then, the Commission has been holding technical talks with the Ukrainian government to pinpoint the exact size of the financing shortfall.
From the start, EU officials were hesitant to endorse the $27 billion figure, later lowered to $20 billion, which they deemed unexpected and unexplained.
Instead, they redirected attention to the €90 billion loan, the bloc’s primary assistance package, which allocates €45 billion for 2026 and another €45 billion for 2027.
Initially, Zelenskyy proposed shifting a portion of next year’s loan allocation to the current year, but the request was never formalised.
As negotiations lingered, Brussels increased pressure on Kyiv to push forward the reforms required to unlock both the support loan and the Ukraine Facility—an earlier assistance package. The Commission expressed frustration over the slow legislative progress.
Together, the loan and the facility still hold roughly $37 billion in unused funds for the remainder of the year, which EU officials maintain is sufficient to sustain Ukraine’s stability.
Having secured 2026, focus is now shifting to the far more daunting 2027.
In its statement, the Commission pledged to ‘swiftly’ release the second €45 billion tranche of the loan, ensuring rapid disbursements ‘subject to the established conditions’.
Brussels and Kyiv will ‘commence work on identifying additional budgetary and defence needs,’ the statement added, urging allied nations to boost their contributions.
‘All sides concurred that other partners should also honour their financial commitments and intensify their efforts given the significant challenges Ukraine faces.’
Earlier this week, Ukrainian Finance Minister Sergii Marchenko warned that his country faces a staggering $78 billion financing gap for 2027, comprising $32.6 billion for the budget and $45 billion for military spending. (The Commission has not yet validated those figures.)
Marchenko cautioned that Russia’s relentless attacks—targeting data centres, telecoms, power grids, factories and railways—combined with the Black Sea blockade, could paralyse the Ukrainian economy and cripple tax collection.
Responding to the Commission’s statement, Zelenskyy hailed the ‘good results’ of the bilateral consultations on the 2026 and 2027 requirements.
‘We have agreed on the format, timeline, and steps needed to ensure full coverage,’ he said. ‘Going forward, we will coordinate this work and align our actions each month, ensuring continuous coordination.’