EU pushes Ukraine to focus on reforms to unlock funding

The European Commission has emphasized that all financial aid to Ukraine must be tied to the country implementing specific reform programs, according to a spokesperson for the EU body. Speaking at a briefing in Brussels on Tuesday, Balázs Ujvári, the spokesperson, addressed the question of financing options for Ukraine in 2026 and 2027, in light of President Volodymyr Zelenskyy's assertion that the 2026 defense budget carries a deficit of $27 billion.

Ujvári outlined three key points: the need for Ukraine to continue implementing reforms, for international partners to make concrete commitments, and for preparations for 2027 to begin. Regarding a EUR 90 billion loan, the EU has allocated EUR 15 billion so far, with the goal of reaching EUR 45 billion by 2026. He stressed that the remaining gap necessitates focused efforts to meet the target.

Ujvári reiterated that Ukraine must also continue implementing these reforms, acknowledging the difficult circumstances but stressing that reaching these reforms is a prerequisite for allocating additional funds. Even with a EUR 90 billion loan provided this year and next, there would still be a shortfall of about EUR 45 billion, he said, urging international partners to step in and help.

Norway's $9 billion commitment served as a positive example, and the EU expects other partners to follow suit soon. As the year concludes, the focus shifts to planning for 2027, with the European Commission and Ukraine aiming to agree on a financial strategy that specifies allocations across three areas: a EUR 90 billion loan, the Ukraine Facility, and the defense component.

The EU's financial support for Ukraine this year will hinge on the completion of these reforms, according to Ujvári.