Key facts
- Ukraine needs $27 billion to cover a defense budget gap in the next two months.
- The shortfall is primarily for drones, missiles, and supplies for Ukrainian soldiers.
- About a third of the needed funds are for drones in January, February, and March.
- President Zelenskyy urged the European Commission to expedite the second tranche of a €90 billion loan.
- EU member states agreed on terms to release €6.6 billion in European Peace Facility funds for Ukraine.
- The EU's Military Assistance Mission for Ukraine will receive €900 million.
Ukraine requires an additional $27 billion to bridge a defense budget gap within the next two months to ensure the continued procurement of weapons, particularly drones and missiles, for early 2025. President Volodymyr Zelenskyy stated that without timely orders and payments in October and November, the country will face significant challenges in January and February.
Zelenskyy emphasized that securing these funds was a primary focus of his recent diplomatic discussions with European partners, urging the European Commission to release the second tranche of a €90 billion loan sooner. He noted that the deficit is largely for Ukrainian-made drones and missiles, underscoring the importance of continued investment in domestic defense production.
The budget shortfall was first highlighted in August, stemming from accelerated state defense spending and delays in the EU's €90 billion loan, partly due to Hungary's stance. Purchases made earlier in the year included various types of drones and interceptors. Despite this, Europe has already committed €30 billion to Ukraine this year as part of the larger loan package.
On Friday, EU member states reached an agreement on the terms for disbursing €6.6 billion from the European Peace Facility. According to Kaja Kallas, the EU's top diplomat, €900 million will support the EU's Military Assistance Mission for Ukraine, €1 billion will fund joint procurement of equipment, and €4.7 billion will reimburse member states, some of which intend to channel their share directly to Ukraine.