Ukraine's unexpected budget deficit raised questions in Europe - NYT
Ukraine's unexpected announcement about the need for approximately $27 billion more by the end of 2026 raised questions among some European partners. The EU is now trying to find out how such a large defense budget deficit was formed, what its real scale is, and how much additional funding Kyiv actually needs.
The New York Times reported this, citing European diplomats and officials.
According to the publication, the scale of the deficit came as a surprise to many officials in Europe. Two NYT interlocutors said that in private discussions some European officials raise questions about Ukraine's efficiency in using funds and the accuracy of the assessment of its additional needs.
However, this is not the official position of the European Union. The European Commission is currently primarily trying to obtain detailed calculations. After negotiations between European Commissioner Valdis Dombrovskis and Prime Minister Serhiy Koretskyi, Brussels announced that it was necessary first to form a clear understanding of Ukraine's budget and financial situation, and only then determine ways to cover the shortfall.
The reasons for the deficit are explained differently
There is still no full public breakdown of the additional need of $27 billion. It is known that it includes spending on weapons, military allowances, and payments to the families of the fallen.
Volodymyr Zelenskyy, informing partners about the deficit on August 24, said that the Ministry of Defense had already used part of the funds that were allocated for the end of the year.
Former Defense Minister Mykhailo Fedorov denied that a shortfall of this scale formed under his leadership. According to his version, it must be related to projects that appeared after the change of leadership of the Ministry of Defense.
At the same time, the head of the Verkhovna Rada's budget committee, Roksolana Pidlasa, told NYT that at the beginning of the year the expected deficit was estimated at approximately $7.5 billion. However, war spending continued to grow rapidly: military expenditures in the first eight months of 2026 increased by more than 17% compared to last year.
Additional pressure is also created by Russian strikes on industry and export infrastructure, which simultaneously force an increase in defense spending and reduce the revenues on which the budget relied.
The EU may give Ukraine money earlier than planned
The European Union has already agreed on a €90 billion loan for Ukraine, planned for 2026-2027. According to the original plan, half of the resource should be available this year, and the rest next year.
One of the options currently being discussed is to move part of the funding from 2027 to 2026. This would allow Ukraine's additional needs to be covered more quickly without the need to immediately agree on a new large assistance package.
However, such a decision would only postpone the problem in time: the more funds Kyiv receives early, the fewer resources will be left for next year.
Ukraine is simultaneously seeking additional support from the United Kingdom, Canada, and Japan. Kyiv is also continuing to insist on more active use of frozen Russian state assets, but there is still no agreement in the EU on such a mechanism.
According to NYT, the unexpected increase in financial needs could complicate Kyiv's negotiations with partners precisely at a time when the role of European funding for Ukraine is growing. At the same time, European officials do not question the need to support Ukraine, but are trying to get more detailed calculations before new financial decisions.
Based on materials: The New York Times, Council of the European Union
