Published on 28/09/2026 – 14:11 GMT+2
Ukraine has reduced its financing shortfall from $27 billion to $20 billion through austerity, Prime Minister Serhii Koretskyi announced on Sunday, while warning that filling the remaining gap remains unresolved.
Spending cuts will impact road repairs and cultural projects, but military salaries are shielded from reductions.
Koretskyi explained in an interview with TSN that the government will focus on optimisation and reallocating resources to prioritize the armed forces, ensuring military salaries remain protected.
Decisions will be guided by what ensures survival, he added, noting that this is the sole criterion for cutting.
Kyiv is negotiating with the European Commission, the IMF and other allies on how to close the budget shortfall, which threatens Ministry of Defence funding and could delay essential weapons deliveries.
Russia’s recent escalation has heightened the urgency to secure financing.
Koretskyi noted, “Despite joint efforts, we have not yet found a way to cover these expenses.”
Koretskyi clarified that the $27 billion figure was not a new request for funds, but rather part of the $155 billion (€136.3 billion) annual war cost that Ukraine had already presented to allies in February.
Ukraine submitted a comparable assessment to the Commission when Brussels was drafting its €90 billion support loan, he said. The loan is split evenly, with €45 billion allocated for 2026 and €45 billion for 2027, and disbursements are already in progress.
Ukrainian officials have considered front‑loading a portion of the loan, but doing so would reduce next year’s funds and could exacerbate the fiscal strain.
Commission officials continue to assess the exact size of the budget deficit and have urged Ukraine to accelerate reforms in order to unlock about €20 billion of financial assistance available this year.
Brussels will host a new Ukraine Donor Platform meeting on Tuesday, bringing together representatives from allied nations and financial institutions.
A Commission spokesperson said, “We aim to gather international partners ready to discuss how we can bridge the budgetary gap.”
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