Ukraine's $27 billion defense budget gap surprises European allies, NYT reports
Ukraine has told its European partners it needs another $27 billion to cover a defense budget shortfall this year, surprising officials who are now trying to determine how the gap grew so large and how it could be filled, the New York Times reported.
President Volodymyr Zelenskyy told European officials visiting Kyiv for Ukraine's Independence Day in August that the country needed the additional funding to get through the end of 2026.
Four European diplomats told the NYT that officials had not expected such a large shortfall. Two European officials said some have privately questioned whether Ukraine is spending money efficiently or whether its needs have been overstated.
Ukraine has not published a full breakdown of the $27 billion gap. Zelenskyy has said the funding is needed for weapons, military salaries and payments to the families of soldiers killed in action.
Earlier this year, Ukrainian officials had expected a significantly smaller shortfall. Roksolana Pidlasa, head of parliament's budget committee, told the NYT she had previously been warned of a gap of about $7.5 billion.
Military spending, however, increased by more than 17% in the first eight months of 2026 compared with the same period last year, Pidlasa said. She also said Russian attacks on Ukrainian industry and the country's grain export corridor had cost Ukraine around half of its expected revenue last month alone.
Zelenskyy has said the Defense Ministry used money originally budgeted for later in the year under former Defense Minister Mykhailo Fedorov. Fedorov has disputed that explanation, saying a shortfall of that size did not exist during his tenure and suggesting it was linked to projects undertaken by the ministry's new leadership.
European officials are now assessing the size and origins of the funding gap and whether additional money should be provided this year. Ukraine has also asked Britain, Canada and Japan for help.
One possible solution is to accelerate payments from the European Union's €90 billion support loan to Ukraine, which is currently scheduled to be disbursed over 2026 and 2027.
Eight European diplomats and officials told the NYT that bringing some of that funding forward may be the quickest workable option. No agreement has been reached, however, and accelerating the payments would leave less funding available next year.
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