EU urgently seeks $19 billion to cover Ukraine’s budget deficit – FT
9 July 2025 00:26
The European Union is trying to find up to $19 billion to finance Ukraine’s state budget deficit in 2026. This was reported by theFinancial Times, citing sources familiar with the negotiations, "Komersant Ukrainian" reports.
The reason for the deficit is the reduction in US aid and the lack of prospects for a peace agreement with Russia.
Key options being considered by the European Commission:
- transfer of bilateral grants as off-budget military support;
- providing loans under the G7 mechanism for $50 billion, financed by the proceeds of frozen Russian assets;
- reinvesting these assets in more profitable (but riskier) financial instruments.
European officials admit that previous estimates of the end of the war in 2025 have not materialized, so they have to revise their approaches to financing in 2025.
According to the FT, without additional external funding, Ukraine could be left with at least an $8 billion deficit next year, and in the worst case scenario, a $19 billion deficit.
The uncertainty over further US military aid is forcing Brussels to act quickly, especially ahead of the Ukraine Recovery Summit to be held in Rome this week with the participation of European Commission President Ursula von der Leyen.
