The European Commission and Ukraine have identified sources of financing the needs of Kyiv for 2026

The European Commission and Ukraine said they had identified funds to cover Kyiv's budget and defense needs in 2026 after Ukrainian authorities reported funding shortfalls and asked partners to provide additional funds, the parties said in a joint statement released on Thursday.

Earlier, Ukrainian Prime Minister Sergei Koretsky announced a shortage of $27 billion to finance military spending in 2026. According to him, Kyiv expected to independently find about 7 billion dollars by shifting costs, redistributing budget funds and cutting costs, and receive the remaining 20 billion with the help of partners.

“Today, thanks to coordinated joint efforts, we have identified funds to cover Ukraine’s budgetary and defense needs for 2026. We also reaffirmed the steps necessary to ensure their timely release,” the European Commission and Ukraine said in a joint statement.

At the same time, on September 29, the European Commission reported that out of the 45 billion euros envisaged for 2026, about 15 billion were transferred to Kyiv as part of the Ukraine Support Loan. The EC indicated that the further allocation of part of the funds depends on Ukraine’s implementation of the agreed reforms.

The European Commission and Ukraine also agreed to accelerate the distribution of a further 45 billion euros under this loan for 2027, subject to established conditions, and begin work to identify additional budgetary and defense needs of Kyiv.

Ukraine Support Loan in the amount of 90 billion euros is designed for 2026-2027. Of the total amount, approximately 60 billion euros are intended for military support and 30 billion for budgetary support. For 2026, the EU has provided up to 45 billion euros, including up to 16.7 billion in budget support and up to 28.3 billion to support the defense-industrial potential of Ukraine. Another 45 billion remains available for 2027.