Following statements by EU representatives regarding funding for Ukraine, the Ministry of Finance clarified the budget’s funding needs and the issue that remains unresolved. This was reported by RBC-Ukraine, citing a Facebook post by Ukrainian Finance Minister Sergii Marchenko. According to him, it is important to distinguish between state budget needs and defense needs. Marchenko emphasized that these are two separate funding streams that should not be conflated.
State Budget Funding
The first stream consists of international financial aid allocated for non-military state budget expenditures. Marchenko stated that Ukraine needs to receive $29.5 billion from international partners by the end of 2026. The country recently received over $3 billion of this amount. The Minister noted that Ukraine expects to secure the remaining necessary funding, provided it fulfills all obligations agreed upon with its partners. This entails, in particular, decisions by the Verkhovna Rada and the government, as well as the adoption of necessary laws and resolutions.
“There will be no funding gap if we fully complete our ‘homework’ regarding our obligations,” Marchenko stated.
Separate Funding for Defense
The second stream concerns EU funds under the USL (Ukraine Support Facility) framework, which are designated for defense needs—specifically the procurement of weapons and drones. According to the Minister, these funds are guaranteed and are not contingent upon meeting additional conditions. As of now, Ukraine has access to another €17 billion to be utilized by the end of 2026. Marchenko also announced that Ukraine has reached an agreement with the European Commission to expedite the approval of requests for these funds.
The origin of the need for an additional $27 billion
At the same time, a separate issue regarding defense funding remains. The Ministry of Defense identified a need for an additional $27 billion for 2026. These funds are required even after fully utilizing the financing available under the USL. This week, the Ukrainian side held meetings in Brussels with representatives from the Ministry of Defense and the European Commission to discuss potential ways to cover this amount. Marchenko noted that Ukraine has already developed a plan to address this. However, the existence of such a plan does not mean the issue of additional defense funding has been fully resolved.
“We have developed a plan and presented our vision, but that does not mean the problem has disappeared,” he emphasized.
Ukraine plans to cover more than $7 billion using its own resources—specifically through cost savings and the reallocation of government expenditures. According to the minister, Ukraine expects to secure another $12 billion or so through joint efforts with partners. A funding source for the remaining amount is still being sought.
“The remaining funds represent a critical need, and we are working with the Ministry of Defense to identify a source to cover them,” the minister added.
However, the European Commission will be unable to cover this portion of the funding requirement in 2026 due to the lack of appropriate financial instruments. Marchenko assured that Ukraine continues to work with international partners to meet all the needs of the state budget and defense.
