The European Union is forced to seek an additional 70 billion euros to finance Ukraine’s needs in 2027 due to the protracted war and the exhaustion of previously agreed-upon budgets.
Euronews reports this in its article, as cited by Dengi.ua.
Why Ukraine Needs Additional Funding for 2027
The previous €90 billion loan program was structured on the assumption that hostilities would likely end in 2026. However, due to the ongoing large-scale offensive by the Russian Federation’s army and regular strikes on critical infrastructure, available resources proved insufficient to cover the government deficit.
Ukrainian President Volodymyr Zelenskyy emphasized that next year, the total cost of the war will reach 155 billion euros. Kyiv needs at least another 70 billion euros from its allies to strengthen its defense capabilities, in particular to significantly scale up domestic production of modern strike drones capable of disrupting enemy logistics. The European Commission confirmed these estimates following technical consultations. This amount is intended to supplement the already approved tranches totaling 45 billion euros. Brussels expects other key partners—the United Kingdom, Canada, Norway, and Japan—to share the financial burden.
How Issuing Joint Eurobonds Will Help Attract Capital
The most likely mechanism for raising funds remains the issuance of joint debt instruments (Eurobonds) on international financial markets. At the same time, the process of raising liquidity is becoming more complicated due to the rising cost of borrowing worldwide amid soaring oil prices and growing global public debt.
According to the European Commission, the yield on 10-year EU bonds rose from 2.8% in January to 3.44% in September 2026. Nevertheless, the bloc retains its highest credit rating (AAA) and remains a competitive issuer, although debt-burdened countries are forced to borrow at much higher rates.
At the same time, the process is being hampered by internal disagreements: Hungary, Slovakia, and the Czech Republic have already officially refused to participate in joint borrowing for Kyiv, and Bulgaria may soon join them.
Why the EU Is Not Transferring Frozen Russian Assets to Ukraine
An alternative source for covering the deficit remains the 210 billion euros in frozen sovereign assets held by the Central Bank of the Russian Federation, but the Belgian government continues to block their confiscation. The vast majority of these funds—€185 billion—are held at Euroclear, the international securities depository in Brussels.
Belgian Prime Minister Bart De Wever is convinced that the seizure of Russian reserves would trigger a massive crisis in the national banking system. He insists on a complete separation of legal and financial risks, demands indefinite guarantees of compensation for potential losses, and categorically rejects the transfer of assets to a single pan-European trust fund. The idea of confiscation is supported by the Baltic states, the countries of Northern Europe, Germany, Poland, and Ireland; however, due to Belgium’s hardline stance and the caution shown by France and Italy, the issue has been removed from the immediate agenda for now.
