Ukraine faces €23B hole in defense budget as Western aid lags
As Western leaders gathered in Kyiv to mark Ukraine's Independence Day, President Zelenskyy revealed a €23 billion shortfall in this year's defense budget. The gap stems from Hungary delaying the EU's €90 billion loan while Ukraine had already spent funds earmarked for the second half of the year.
Ukrainian President Volodymyr Zelenskyy said Monday that the country's defense budget faces a €23 billion shortfall this year. The announcement came as Western leaders convened in Kyiv for a meeting of the so-called coalition of the willing, marking Ukraine's Independence Day and reaffirming continued support.
Zelenskyy said the funds are needed not only for weapons and air defense but also to pay soldiers, support families of fallen troops, and secure supplies heading into 2027. "We are not asking you to fight for us. Give Ukraine everything to stop this war, to stop it faster than Putin can start the next one," he said.
How the gap emerged
The shortfall arose after the defense ministry spent funds earlier this year that had originally been earmarked for the second half — covering purchases such as fiber-optic drones, mid-range strike drones and interceptors. At the same time, Hungary delayed progress on the EU's €90 billion loan package, of which Europe has already pledged €30 billion this year.
Zelenskyy said Ukraine needs roughly €6.8 billion to €8.5 billion to ensure a "normal start" to next year, plus about €17 billion more for military salaries and other expenses.
EU offers partial relief
The European Commission approved €6.1 billion in new defense procurement for Ukraine on Monday, covering air-defense missiles, ammunition and radars. Still, the sum falls well short of what's needed. Zelenskyy said he is working with France and Germany to bring forward disbursement of the EU loan's second tranche.
Attendees in Kyiv included U.K. Prime Minister Andy Burnham, European Council President António Costa, Luxembourg's Prime Minister Luc Frieden, Moldovan President Maia Sandu, Estonian President Alar Karis, Finnish President Alexander Stubb, and other Nordic and Baltic leaders, while French President Emmanuel Macron and German Chancellor Friedrich Merz joined remotely.
Zelenskyy also acknowledged that Ukraine's parliament is delaying 24 reform bills tied to Western funding, complicating efforts to secure further aid.
