Zelensky called the defense funding deficit of Ukraine

Ukraine needs to find about €23 billion in additional funding for defense expenditures by the end of 2026. The money is needed for the purchase of weapons, payments to military personnel and families of the fallen, as well as for creating reserves with which the country must enter 2027.

This was reported by Politico, citing President Volodymyr Zelensky and Ukrainian officials.

The deficit arose partly because the Ministry of Defense used part of the funds ahead of schedule in the first half of the year, which were originally planned to be spent in the second half.

"At the beginning of the year, the ministry decided to use funds in the first half of the year that should have been spent in the second half," Zelensky told journalists.

Part of this money went to the most urgent purchases for the army. Among them were fiber-optic FPV drones, medium-range unmanned aerial vehicles and interceptor drones.

Now the funds used early must be compensated, while simultaneously financing the current needs of the army.

According to Zelensky, approximately €6.8–8.5 billion must be obtained in advance so that Ukraine can ensure a "normal start" to 2027. This primarily concerns contracts for weapons and other supplies that must be paid for in advance.

Another approximately €17 billion is needed for the monetary allowance of military personnel, payments to the families of the fallen, and other defense expenditures.

Thus, Ukraine's total additional need is around €23 billion and could be higher depending on procurement volumes and the timing of Western funding receipts.

Meanwhile, Kyiv is trying to accelerate the receipt of funds from the European Union. Zelensky said that he is discussing with France and Germany the possibility of the early provision of the second part of European financing.

"Practically, we need to bring the second part of the European funds allocated to Ukraine closer, and this is an extremely difficult task," the president said.

On August 24, the European Commission approved new defense purchases for Ukraine totaling €6.1 billion. The funds are intended for air and missile defense systems, missiles, ammunition and radars.

This €6.1 billion is part of the European loan of support for Ukraine totaling €90 billion. However, the approval of purchases does not mean immediate disbursement of the entire amount: Ukraine must provide concluded contracts with defense enterprises, after which the European Commission will verify them before paying the funds.

The new decision supplements previously approved defense purchases of €16 billion, of which €8.35 billion has already been paid. In total, under the EU loan, €28.3 billion is provided for Ukraine's defense needs in 2026.

Another challenge remains the fulfillment of conditions related to European financing. According to Politico, the Ukrainian parliament is delaying the adoption of 24 bills related to reforms on which the provision of part of Western aid depends. Although not all of these funds are intended directly for the army, receiving them would free up budget resources for defense.

Based on materials from: Politico, European Commission