BRUSSELS — The European Commission and Ukraine have reached a deal to accelerate the disbursement of €45 billion earmarked for Kyiv in 2027 under the EU’s €90 billion loan program, they said Thursday in a joint statement. Russia has in recent weeks escalated its drone and missile attacks against Ukraine, while the country is running out of funds to buy weapons to defend itself. Prime Minister Sergii Koretskyi warned journalists this week that Ukraine faces a $27 billion (€23 billion) defense funding gap this year, with Kyiv hoping to cover about $7 billion domestically and looking to partners for the rest.
President Volodymyr Zelenskyy said that if the gap isn't plugged in the next two months, Kyiv risks being unable to buy weapons early next year. At a recent meeting of EU defense ministers, "many called for front-loading parts of the €90 billion loan allocated for 2027," meaning disbursing part of the 2027 loan this year instead, the EU's top diplomat Kaja Kallas said last month. But the Commission preferred to instead speed up the disbursement of the 2027 loan next year itself, meaning Ukraine would get that money faster, diplomats said.
"Our dialogue with the European Commission has delivered good results in addressing Ukraine's financial and defense needs for 2026 and 2027," Ukraine’s President Volodymyr Zelenskyy said. "We have agreed on the format, timeline, and steps needed to ensure full coverage," he added. "For 2027, we have agreed to move forward swiftly with the allocation of €45 billion under the Ukraine Support Loan, subject to the established conditions," the two sides said, referring to the reforms Ukraine must carry out to receive the money.
Once Ukraine meets the conditions, the funds will be immediately disbursed, according to a senior EU official. The two sides also agreed that they will "begin work on identifying additional budgetary and defence needs" and meet monthly to coordinate their efforts. The €90 billion EU loan was agreed by leaders last December to provide financial support to Ukraine in 2026 and 2027.
It includes strict conditions for Kyiv, including adherence to the rule of law and the fight against corruption. A large share of the loan — €60 billion — is earmarked for Ukraine’s defense needs. The loan has been split evenly, with €45 billion earmarked for 2026 and another €45 billion for 2027.
It was designed to cover two-thirds of Ukraine's external financing needs over the two years, with the rest expected to be covered by other countries, particularly G7 partners. The joint statement also calls on those partners to step in. "All sides agreed that other partners should also fulfil their financial commitments and step up their efforts in light of the significant challenges Ukraine is facing," it says.
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