EU unlocks €6.6 billion for Ukraine / Kyiv faces a $27 billion shortfall in the Defense budget

Member states of the European Union agreed on Friday, September 25, 2026, in Brussels to unlock €6.6 billion in military aid for Ukraine, at a time when Kyiv is facing a $27 billion shortfall in its defense budget. The funds are needed, among other things, to pay for drone deliveries scheduled for the first three months of 2027.

The funds come from the European Peace Facility (EPF), created to partially reimburse weapons and ammunition supplied to Ukraine by member states. Of the total, €4.7 billion will be allocated for reimbursements, €1 billion for joint procurement of military equipment, and €900 million for the European mission to train Ukrainian military personnel.

The program had been blocked since May 2023, following Hungary’s veto over the inclusion of OTP Bank on Ukraine’s list of companies considered international sponsors of the war. The deadlock was overcome this year after the government in Budapest changed.

The political decision does not mean the immediate release of the funds. Several legislative acts must be adopted first. The European Commission and the International Monetary Fund are discussing solutions with the Ukrainian government to cover the deficit. Volodymyr Zelensky warned that the issue must be resolved in October and November so that arms production and deliveries are not affected.