European Commission: Kyiv has not asked EU for early funding to cover €27 billion defence budget shortfall

Ukraine has not yet formally asked the European Commission to provide part of the €90 billion loan scheduled for 2027 ahead of time in 2026 to cover a €27 billion shortfall in its defence budget.

Source: European Pravda correspondent, citing European Commission chief spokesperson Paula Pinho

Details: The Ukrainian authorities have not yet asked the European Commission to disburse part of the €90 billion loan early to cover the €27 billion shortfall in Ukraine's defence budget.

"We haven't received such requests formally," Pinho said.

She noted that the EU is approving and making payments under its €90 billion loan at a "very, very high speed rate" and has not yet disbursed all the funds earmarked for 2026 – a situation in which advance financing could potentially be considered.

"We have not been told in bilateral terms officially yet that there is this intention to front load the funding. That's why we are focused right now on the plans that we've put in place. But of course, this is an issue area where there are continuous exchanges between us and Ukraine. [...] And of course, we stand ready to accommodate requests to the largest extent possible," the European Commission's chief spokesperson stressed.

As previously reported, on 24 August, President Volodymyr Zelenskyy said during a meeting of the Coalition of the Willing in Kyiv that Ukraine faced a €27 billion defence budget shortfall in 2026. He added that one of the first options for covering the gap was the early disbursement of part of the EU's €90 billion loan currently scheduled for 2027.

Background:

• As European Pravda reported, on 24 August, the European Commission approved €6.1 billion in defence procurement for Ukraine under the EU's €90 billion loan.
• European Pravda also reported that the European Union is expected to disburse around €20 billion to Ukraine by the end of 2026, with new tranches potentially arriving in the coming weeks.
• On 30 July, the Council of the EU approved an updated reform plan under the Ukraine Facility, which will allow Ukraine to receive €8.3 billion in 2026 to cover budgetary needs.

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