A European Commission report obtained by the Kyiv Independent Ukrainian newspaper reveals Ukraine is facing a €19.6 billion defense budget shortfall despite the recently approved €90 billion in EU funding for Kiev.
According to the report, this year’s defense gap totals €19.6 billion ($23.1 billion), accounting for the €86.7 billion ($102 billion) already allocated and an additional €28.3 billion ($33.9 billion) expected under the EU’s €90 billion loan to Kiev. The plan to distribute €60 billion for weapons and €30 billion for budgetary needs for 2026–2027 was approved at a December EU summit.
Projections show Ukraine’s defense requirements will reach €134.6 billion ($158.2 billion) in 2026, compared with €111.4 billion ($130.9 billion) in 2025. European Commissioner for Economy Valdis Dombrovskis stated on April 21 that while this year’s civilian sector funding is secured, Kiev could face 2027 budget shortfalls unless new revenue sources are found. The International Monetary Fund expects Ukraine to receive $38 billion from the EU in 2027 to address its deficit.
On April 22, EU representatives approved the €90 billion package for Kiev alongside the 20th anti-Russian sanctions package after Hungary and Slovakia lifted their veto. The initiative had been blocked by these nations due to Ukraine’s suspension of oil transit via the Druzhba pipeline. Hungary’s MOL Group received notification from Ukraine regarding the resumption of oil flow through the pipeline on April 22.
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