Ukraine's €23 billion funding gap puts EU in a bind as Zelenskyy seeks fast cash
President Volodymyr Zelenskyy has asked the EU to bring forward part of its €90 billion Ukraine loan to plug a funding gap at the Defence Ministry. But Brussels fears the move could unravel a fragile compromise struck by EU leaders to finance Kyiv through 2027 in gradual instalments.
Ukraine's Defence Ministry is facing a funding gap of €23 billion. President Volodymyr Zelenskyy has asked the EU to bring forward part of its €90 billion loan to help fill this gap.
The EU had agreed to finance Kyiv through 2027 in gradual instalments. However, according to Euronews, Brussels is concerned that bringing forward the loan could unravel this fragile compromise.
The EU loan has conditions, including that defence equipment bought outside the EU and European Economic Area cannot account for more than 35% of its total value. Ukraine has requested exemptions for Chinese-made drone components and US-made Patriot interceptor missiles, which were approved by the European Commission. France, however, wants these exemptions to be temporary and is working to limit them, hoping to direct a larger share of EU-backed funds towards European manufacturers.
Brief written by urgent.news from Euronews, New Voice of Ukraine — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
