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EU wants details on Ukraine's €23 billion defense funding gap before deciding how to fill it

EU wants details on Ukraine's €23 billion defense funding gap before deciding how to fill it

The European Union wants Ukraine to provide a detailed breakdown of a €23 billion ($27 billion) defense funding shortfall before deciding how to help cover it, EU Economy Commissioner Valdis Dombrovskis told Euronews.

Kyiv says the gap emerged after money originally allocated for the second half of 2026 had to be spent earlier as the war continued at high intensity. The additional funding is needed for military personnel, social support and weapons purchases, including about €6 billion in advance payments for deliveries expected in early 2027.

“There are still open questions,” Dombrovskis said, while acknowledging that Russia's intensifying attacks and Ukraine's difficult economic situation could explain higher financing needs.

“First of all, we need to find out exactly what these additional financing needs are and then discuss with the Ukrainian authorities how we are financing them,” he said.

One option proposed by President Volodymyr Zelenskyy is to accelerate payments from the EU's €90 billion support loan. The bloc originally planned to allocate €45 billion in 2026 and another €45 billion in 2027.

Frontloading that money, however, could leave less assistance available next year. The European Commission has not yet received a formal request from Kyiv to accelerate the payments.

Another option would revive the long-running debate over €210 billion in frozen Russian Central Bank assets held in the EU, most of them at Belgium-based Euroclear.

Belgium has opposed using the assets, citing legal and financial risks, but Dombrovskis said the European Commission was ready to re-engage in discussions with member states and seek a “way forward.”

Sweden, the Netherlands, Spain and Poland, backed by the Baltic states, have recently renewed efforts to use the Russian assets to support Ukraine.