Ukraine faces $32.6 billion 2027 funding gap, minister warns
Next year, the Ukrainian state budget will be strained more than at any point since 2022, Finance Minister Sergii Marchenko said.
Finance Minister Sergii Marchenko warned that Ukraine faces a $32.6 billion funding gap for the 2027 budget, as the state budget will be strained more than at any point since 2022. The ministry is drafting the 2027 budget with the assumption that the war will continue into next year. IMF officials who visited Kyiv this week have reached similar conclusions.
Marchenko noted that liquidity problems are already being experienced and a budget deficit is anticipated. He stated that some non-war-related expenditures may need to be postponed due to this liquidity issue. While sovereign debt servicing may not be affected, the consequences could be felt at the local level, particularly in the construction of shelters and infrastructure.
These projects remain important as Ukraine prepares for another harsh winter with further Russian attacks. Marchenko urged the EU to adopt a creative approach and consider a new plan involving about $300 billion in frozen Russian assets. This was rejected by the EU in December 2025 in favor of a EUR90 billion joint loan program.
Marchenko favors a new plan that would change responsibility for the assets currently held in Belgium and introduce measures to reduce legal risks for the Belgian government and Euroclear. He emphasized the need to discuss this plan and create new conditions that would not place legal disputes with Russia on Belgium, but rather share this responsibility among all 27 EU countries.
Written by urgent.news from New Voice of Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
