EU and Ukraine agree on terms to cover Kyiv's 2026 budget

EU and Ukraine have announced a plan to cover Kyiv's 2026 budget and defence requirements, according to a joint statement released Thursday. The European Commission and Ukraine's leaders confirmed that they have identified the necessary means to ensure timely release of funds. The EU currently provides instalments from a €90 billion loan intended to support Kyiv until the end of 2027.

However, Kyiv still requires additional US$20 billion to address its fiscal deficit this year and has requested a faster disbursement of funds.

Ukrainian President Volodymyr Zelensky shared the news on social media, stating that the joint dialogue with the European Commission had achieved positive outcomes in addressing Ukraine's financial and defence needs for 2026 and 2027. Both parties agreed on the format, timeline, and steps required to guarantee full coverage of Ukraine's financial and defense needs.

The statement did not mention any possibility of additional funding being provided to Ukraine. Brussels has previously emphasized that Kyiv must first focus on reforms to unlock the funds. Recent high-profile corruption scandals in Ukraine have led to increased scrutiny of the country's demands in Brussels. For the following year, the EU stated that it would swiftly allocate funds under the €90 billion loan and commence work on identifying further budgetary and defense needs.

The European Union has also encouraged other supporters of Ukraine, such as Britain, Canada, and Japan, to contribute to bridging the financing gap. All parties involved agreed that other partners should fulfill their financial commitments and intensify their efforts given the significant challenges Ukraine currently faces.