Ukraine to Close Its Current Budget Deficit by Year’s End
President Volodymyr Zelensky announced that Ukraine will close its wartime budget deficit by the end of the year following negotiations with the EU. Zelensky stated that Kyiv plans to advance portions of an EU loan into January to order military drones for early 2027, as Brussels balances disbursement of its €90 billion financing facility against domestic reform benchmarks.
Ukrainian President Volodymyr Zelensky confirmed in an interview with Reuters that his nation will close its current military budget deficit before the year ends. During discussions in Brussels, Ukrainian officials reached an agreement on a strategy to manage the financial gap while sustaining military procurement. "We will close the current deficit by the end of the year," Zelensky stated, acknowledging that there remain some challenges to resolve but emphasizing that the issue is being addressed through fiscal adjustments and credit mechanisms.
Zelensky further revealed that European credit allocations planned for 2027 will be transferred to Ukraine in early January, providing financial support to domestic defense contractors to maintain production. The president credited his negotiating team and European partners for achieving this fiscal success, stressing the importance of stabilizing the state budget.
This move comes as Ukraine faces potential budget shortfalls of around €69 billion ($78 billion) in 2027, with defense operations requiring approximately €40 billion ($45 billion) and civilian administration needing €29 billion ($33 billion).
Written by urgent.news from Kyiv Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
