The European Union has denied Ukraine’s request for additional financial support this year until Kyiv implements the promised reforms. Finance Minister Serhiy Marchenko commented on the situation, emphasizing the importance of understanding the difference between military and budgetary funding.
Marchenko noted that international funding, which is necessary to cover non-military expenditures, is critically important. According to him, Ukraine needs to receive $29.5 billion from international partners by the end of the year, of which more than $3 billion has already been received recently. The minister assured that a funding shortfall will be avoided if Ukraine fulfills all its obligations.
At the same time, he emphasized that Ukraine will receive funds from the EU earmarked for the purchase of weapons and drones without any additional conditions. Currently, 17 billion euros remain available, and Ukraine is working to expedite the approval of requests with the European Commission.
Marchenko also reported on an additional defense need of $27 billion, which the Ukrainian Ministry of Defense declared in August. Together with representatives of the Ministry of Defense and the European Commission, the minister discussed possible ways to meet this need, although he noted that the issue remains unresolved.
Specifically, Ukraine plans to cover $7 billion of this need using domestic resources, while another $12 billion is to be secured through joint efforts. The minister also emphasized that the European Commission will not be able to cover this need this year due to a lack of appropriate instruments.
President Volodymyr Zelenskyy had previously noted that the budget deficit is “astronomical,” and that due to delays in reforms, Ukraine risks losing 4.48 billion euros in European aid. The budget portion depends on the implementation of reforms, while funding for the military is received on a regular basis.
