Ukraine seeks billions from the EU

European Commissioner for Economy Valdis Dombrovskis stated that "open questions" regarding Ukraine's budgetary needs must be clarified first. His remarks followed Kyiv's request to its allies to cover a €23 billion funding gap, Euronews reports.

"Of course, we need to carry out a proper, detailed assessment, but we understand that the war continues to rage with great intensity. Russia is even intensifying its attacks. Consequently, the economic situation in Ukraine is also very difficult. We therefore understand that this could lead to an increase in Ukraine's financing needs," Dombrovskis said.

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Ukrainian authorities insist that the €23 billion is required for military personnel costs, social support, and weapons procurement.

However, Brussels is not yet convinced by this figure and is demanding a detailed breakdown to understand the size of the deficit, its origins, and how it might be covered.

As a possible solution, President Volodymyr Zelenskyy has proposed that the EU accelerate disbursements from a €90 billion loan package. However, doing so would disrupt the EU's original schedule, which earmarks €45 billion for 2026 and another €45 billion for 2027. Releasing the funds early creates a risk that the aid could run out as soon as next year.

"First of all, we need to clarify exactly what these additional financing needs are, and then discuss with the Ukrainian authorities how we will finance them," Dombrovskis said, noting that the €90 billion loan allows for certain adjustments. The shortage of funds has raised questions regarding accountability and transparency—issues that have plagued Ukraine since the start of Russia's full-scale invasion. The country has faced numerous corruption scandals and reports of fraud, embezzlement, and the misuse of funds. As a condition for the loan, Kyiv granted Brussels the right to monitor its bank accounts. The European Commission is also scrutinizing arms procurement contracts.

"We place great emphasis on good governance, sound financial management, and the fight against corruption across all these programs, and this is also part of the conditions of our macro-financial assistance program," said Dombrovskis.

To date, out of the €45 billion tranche allocated for 2026, Ukraine has received €3.2 billion in budget support and €8.35 billion in military aid.

As an alternative funding source, Ukraine has urged EU countries to consider using frozen assets belonging to the Central Bank of Russia. The EU holds €210 billion in such assets, the majority of which are kept at the Euroclear depository in Belgium.

Photo: ru-trade.info.

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