Key facts
- Ukraine faces a €23 billion deficit in its defense budget for the current year.
- The shortfall is due to accelerated spending and delays in a €90 billion EU loan package, partly caused by Hungary.
- The European Commission has approved an immediate disbursement of €6.1 billion for defense procurement.
- Kyiv requires an additional €6.8 billion to €8.5 billion for a smooth start to 2027 and €17 billion for personnel costs.
- Domestic political issues, including stalled reform bills, are hindering the release of some international aid.
Ukraine is facing a significant €23 billion deficit in its defense budget for the current year, complicating its efforts to continue fighting Russia. The shortfall emerged after the defense ministry accelerated spending planned for the latter half of the year into the first half. This situation is compounded by delays in a €90 billion EU loan package, with Hungary reportedly obstructing its disbursement. President Volodymyr Zelenskyy highlighted the need for these funds not only for weapons and air defense but also for soldier salaries and support for families of fallen soldiers. He stressed the urgency, stating that Ukraine needs funds in advance to secure supplies for January 2027. The European Commission has offered some immediate relief by approving a €6.1 billion disbursement for defense procurement, including missiles and radars, but this falls short of Ukraine's total needs. Domestically, political hurdles exist, as Ukrainian lawmakers are stalling the implementation of reform bills that are conditions for some international aid. Zelenskyy is actively working with allies like France and Germany to expedite the release of the EU funds, acknowledging the difficulty of this task.