EU wants to determine size of Ukraine's funding gap before discussing how to cover it
EU Economy Commissioner Valdis Dombrovskis said a detailed assessment of Ukraine's growing budget needs must be completed before deciding how to cover them. Kyiv is asking allies to cover a €23 billion funding gap, but Brussels wants clearer figures first.
European Commissioner for Economy Valdis Dombrovskis told Euronews that the European Union first needs to conduct a thorough assessment of Ukraine's growing budgetary needs before deciding how to fund them. He said several open questions related to these needs must still be clarified.
Dombrovskis noted that the war in Ukraine continues with great intensity, with Russia even intensifying its attacks, meaning Ukraine's economic situation remains very difficult and its financing needs could keep growing.
Kyiv's €23 billion request
Ukraine has asked its allies to cover a funding gap of €23 billion, which it says is needed to sustain its military, provide social support and purchase weapons. Brussels, however, is not yet convinced of the figure and is demanding a detailed breakdown showing how large the gap actually is, where it comes from and how it could be covered.
As one possible solution, Ukrainian President Volodymyr Zelensky has proposed that the EU speed up disbursements under a €90 billion loan. This would disrupt the EU's original schedule, under which €45 billion is reserved for 2026 and another €45 billion for 2027. Brussels warns that releasing funds early risks exhausting the aid as soon as next year.
Dombrovskis said the EU first needs to establish exactly what these additional financing needs consist of, and only then discuss with Ukrainian authorities how to fund them, adding that the €90 billion loan does allow for certain adjustments.
Transparency concerns
The funding gap has again raised questions about accountability and transparency that have followed Ukraine since Russia's full-scale invasion began, including numerous corruption scandals and reports of fraud and misuse of funds. As a condition for the loan, Kyiv has granted Brussels rights to monitor its bank accounts, while the European Commission is also reviewing weapons procurement contracts. Dombrovskis said great attention is being paid to good governance, sound financial management and anti-corruption efforts across all these programs.
So far, out of the €45 billion tranche allocated for 2026, Ukraine has received €3.2 billion in budget support and €8.35 billion in military assistance.
As an alternative source of funding, Ukraine has urged EU countries to reconsider using frozen assets of Russia's Central Bank. The EU holds such assets worth €210 billion, most of it held at the Euroclear depository in Belgium.
