The European Commission is seeking solutions to cover Ukraine’s €70 billion funding shortfall in 2027

The European Commission wants to reach a political agreement by the end of the year on covering Ukraine’s funding shortfall for 2027, according to a document seen by POLITICO. Kyiv faces an estimated €70 billion deficit next year, despite the €90 billion loan approved by EU leaders in December 2025.

Of the total, €40 billion is needed for defense spending, while €30 billion is required to operate the national budget. Without additional funds, Ukraine’s government and military would face difficulties sustaining its defense against Russia, as the war has entered its fourth year.

European officials hope that the United States, Canada, Japan and the United Kingdom will increase their contributions. The military deficit could fall to €27 billion if NATO countries honor the commitments they made in Ankara on July 8.

The Commission is preparing several financing options for the EU’s extraordinary summit on November 26. It is unlikely that frozen Russian assets will be included, given Belgium’s opposition and concerns about possible retaliation from Moscow.