EU recalculates Ukraine's needs amid disputes over Russian assets

The European Commission has begun clarifying whether Ukraine is actually facing a new funding deficit after Kyiv informed partners of additional funding needs. Against this backdrop, calls to use frozen Russian state assets have intensified again within the EU.

This is reported by The Guardian. The European Commission confirms that it is currently assessing the scale of a possible funding gap together with the Ukrainian authorities and the International Monetary Fund.

In August, Ukraine informed European partners of a shortfall of about $27 billion to continue funding military needs. However, Brussels does not yet consider this amount to be definitively established. European Commission spokesperson Balazs Ujvari said that it is first necessary to obtain a complete picture of the budgetary and financial situation, after which sources for covering the deficit can be discussed.

In early September, European Commissioner for Economy Valdis Dombrovskis discussed Ukraine's financial needs for 2026 and 2027 with Prime Minister Serhiy Koretskyi. He also held talks with IMF Managing Director Kristalina Georgieva. The European Commission stated that determining the specific amount will require additional technical work in the coming weeks.

The EU has already agreed on a separate €90 billion loan for Ukraine for 2026–2027. Approximately €60 billion of this amount is intended for defense procurement, and another €30 billion for budget support. Up to €45 billion is planned for 2026: €28.3 billion for defense needs and €16.7 billion for budget support.

This loan is financed through EU borrowing on capital markets, not through confiscated Russian funds. The European Commission has previously emphasized that the possibility of using frozen Russian assets in the future remains.

The EU returns to Russian assets again

News of Ukraine's additional deficit has reenergized the discussion about the fate of Russian funds. According to the Council of the EU, about €210 billion in assets of the Central Bank of Russia are currently immobilized within the European Union. A significant portion of these are held in the Belgian financial infrastructure Euroclear.

At the end of 2025, about €195 billion in assets related to Russian sanctions were on the balance sheet of Euroclear Bank. The EU already uses not the Russian state assets themselves, but the income they generate: these proceeds are directed to support Ukraine and to repay loans provided to Kyiv by the G7 countries and the European Union.

An EU attempt to go further and use Russian assets directly previously did not receive the necessary support of member states. One of the main opponents of such a mechanism remained Belgium, which feared legal and financial consequences for the country and for Euroclear.

Now more than 120 Members of the European Parliament have supported a proposal by the centrist Renew group to change the scheme for holding Russian funds. According to the initiative, responsibility for them should move from Euroclear and other financial institutions to a specially created EU mechanism. Its supporters hope thus to address Belgium's concerns, as the country does not want to bear alone the potential consequences of Russian lawsuits and retaliatory measures. The European Commission said it is studying this proposal.

At the same time, Brussels emphasizes that the issue of Russian assets is not currently the main way to solve the problem. The European Commission's priority is to determine Ukraine's real financial needs and ensure the implementation of the already agreed €90 billion program.

Based on: The Guardian, European Commission, Council of the EU.