The European Union is moving to accelerate the delivery of its remaining €45 billion in support to Ukraine, responding to Kyiv's acute financial strain as Russia's war grinds into its fifth year. The decision, outlined in a strategy published by the European Commission on Friday, aims to concentrate disbursements in the first half of 2027 to prevent a catastrophic interruption of aid.
The original €90 billion loan, agreed last year, was split evenly between 2026 and 2027, with the first tranche already being paid out. But the assumption that the conflict might wind down by 2026 has collapsed, forcing Brussels to rethink its timeline. The new plan allocates €31.7 billion for military support and €13.3 billion for budget assistance, with the military portion to be released gradually as Kyiv submits contracts for weapons—a process that can begin this year to ensure deliveries arrive on time.
Reforms and conditionality
The budget support component is tied to reforms, some linked to Ukraine's EU accession process. European leaders have urged Kyiv to maintain its legislative momentum, though a €3.7 billion payment has already been delayed pending progress. Commission President Ursula von der Leyen stressed the importance of predictability: "We are providing Ukraine with much-needed predictability and helping maintain essential public services. Together with our allies, we must also do everything in our power to mount pressure on Russia to stop its barbaric war of aggression."
Ukrainian President Volodymyr Zelenskyy had pressed Brussels to speed up the money. "The sooner we start receiving the corresponding tranches for our drone production, air defence procurement, budget support and other vital expenditures, the better our position in 2027 will be," he said ahead of the announcement.
Closing the €70 billion gap
Beyond the existing loan, the Commission is scrambling to cover a €70 billion shortfall Ukraine faces next year. Officials insist the bloc will shoulder no more than two-thirds—roughly €46 billion—with the rest expected from other allies. Joint EU debt issuance has emerged as the leading option to raise the funds, a move that would mark a significant step in European fiscal integration.
An internal document seen by Euronews identifies three drivers of the deficit. First, the war's prolongation: the original loan was designed on the assumption of an end to hostilities in 2026, a premise that has since unravelled. Second, Russia's intensified attacks on civilian infrastructure and its blockade of the Black Sea are "weakening economic activity and Ukraine's capacity to raise domestic revenues", deepening reliance on external donors. Third, assistance from non-EU allies is declining; the document notes that if all NATO members meet their July summit pledges, the military aid gap could shrink by up to €13 billion next year.
Ukraine's financial needs, the document adds, will be "largely determined" by its ability to resist Russian airstrikes, which depend on costly US-made Patriot interceptors. Kyiv has accused Washington of delaying Patriots that were paid for with European money. The impasse is linked to US President Donald Trump's insistence that Ukraine stop striking Russian oil refineries, which he claims drives up global fuel prices. NATO allies fear further delays could persist until after the US midterm elections.
The fast-tracking of funds comes as Brussels reopens its €21.3 billion defence loans, hoping Ukraine will benefit from the renewed facility. Meanwhile, the EU is exploring alternative energy partnerships, such as a potential LNG deal with Canada to ease Europe's gas crunch, though the bloc has ruled out any restart of Nord Stream after the war.
The accelerated disbursement is a recognition that Ukraine's survival depends on steady, predictable support. As von der Leyen put it, the EU is committed to maintaining essential services and applying pressure on Moscow. But with the gap still wide, the coming months will test the bloc's ability to deliver on its promises—and to persuade allies to do the same.
