EU urges G7 allies to cover Ukraine's budget deficit – FT

Brussels is pressing its Group of Seven (G7) allies to provide funding to Ukraine next year to cover a €70 billion budget deficit amid declining aid from non-EU countries.

Source: The Financial Times, citing European Commission estimates and diplomats

Details: The European Commission has confirmed Ukraine's projection of a €70 billion funding shortfall in 2027. The estimate includes military spending after the remaining weapons supplied under the Biden administration have been delivered. US President Donald Trump has currently halted all direct funding for Ukraine.

Quote from the FT: " According to a forecast by the European Commission, seen by the FT, Kyiv's non-EU allies have so far pledged just €4bn for next year, down from €19bn in 2026. G7 members US, UK, Canada and Japan are collectively set to provide just €1bn, the analysis shows."

Details: The EU has begun contingency planning to secure additional funding to keep Ukraine's finances stable in 2027 if NATO and G7 partners do not step up their aid. European Commission officials are exploring several options, including jointly issuing debt, which is expected to be discussed at the summit in late November.

Brussels is also conducting active bilateral negotiations with London, Ottawa and other capitals. European officials are awaiting the publication of the UK and Canadian budgets for 2027, hoping they will include new financial commitments to support Ukraine.

Meanwhile, Brussels has ruled out covering the shortfall on its own if other allies fail to step up their support. A European Commission spokesperson said that the EU and its member states account for 80% of the promised aid to Ukraine for 2027.

Quote from the European Commission spokesperson: "Europe cannot meet Ukraine's financing needs alone . . . International partners must also step up, including NATO allies."

Details: The position of Kyiv's partners outside the EU currently remains uncertain. A spokesperson for the Canadian finance ministry noted that Ottawa has committed a total of CA$27 billion in aid to Ukraine since the start of Russia's full-scale invasion in 2022.

Quote from a spokesperson for the Canadian finance ministry: "I won't speculate on what may or may not be included in next week's budget."

Details: Japan's Foreign Ministry disputed the European Commission's conclusions, emphasising that the government "cannot make any definitive statements regarding the possibility of future financial support to Ukraine".

Quote from a Japanese Foreign Ministry spokesperson: "However, Japan is considering options to address Ukraine's financing needs based on future developments . . . including discussions among G7 members."

More details: Alongside the budget shortfall, allies are also falling short on military aid. The European Commission estimates that NATO's 32 member states are €13 billion short of meeting their pledge to provide Ukraine with €70 billion in defence support this year.

Support Ukrainska Pravda on Patreon to help us keep reporting!