EU Chief warns of Ukraine facing major financial shortfall
In a letter sent to all 27 EU governments, von der Leyen described Ukraine’s “financial deficit… as significant,” even after accounting for current international commitments.
“According to preliminary IMF projections—assuming the war ends by the end of 2026 and already taking into account all the support that has been promised—Ukraine will still face a huge deficit that cannot be filled without the injection of new funds,” she wrote.
She estimates Ukraine’s needs at €70 billion ($81 billion) in 2026 and €64 billion ($74.2 billion) in 2027, emphasizing that Kyiv’s budget and defense requirements far exceed what it can cover alone. Ukraine’s immediate priorities include stabilizing the front, countering Russian attacks, and strengthening its armed forces while defending civilians and protecting critical infrastructure.
Of the €103.2 billion ($119.7 billion) in military expenditure projected for 2026, Ukraine can cover only half, leaving a €51.6 billion ($59.9 billion) gap that must be filled by partners alongside necessary macro-financial support.
The letter outlines three potential approaches for reconstruction loans, explicitly including the use of frozen Russian assets—a topic of debate among EU governments.
Based on IMF projections and Ukrainian estimates, von der Leyen said the “total remaining need” for 2026–27 amounts to €135.7 billion ($157.4 billion). EU governments will now examine the commission’s proposals as discussions continue on securing long-term support for Ukraine.
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