KYIV — Ukraine faces a €23 billion hole in its defense budget this year, leaving Kyiv scrambling for cash to fight Russia even as Western leaders gathered in the capital to mark the country's independence day and pledge ongoing support. The money is needed not only for weapons and air defense, but also to pay soldiers, support the families of those killed and ensure Ukraine has the supplies it needs to start 2027. Give Ukraine everything to stop this war, to stop it faster than Putin can start the next one,” President Volodymyr Zelenskyy said in a speech Monday.
Prime Minister Andy Burnham was in Kyiv Monday for a meeting of the so-called coalition of the willing. European Council President António Costa, Luxembourgish Prime Minister Luc Frieden, Moldovan President Maia Sandu, Estonian President Alar Karis, Finnish President Alexander Stubb and other Nordic and Baltic leaders also attended in person, while French President Emmanuel Macron and German Chancellor Friedrich Merz joined remotely. I am determined we [the coalition of the willing] will work together to deliver the support you need,” Burnham said in a statement.
The funding gap originated after the defense ministry brought forward spending originally planned for the second half of the year, while the EU’s €90 billion loan was delayed by roadblocks from Hungary. The shortfall comes on top of €30 billion in funding Europe has already pledged to Ukraine this year as part of the €90 billion loan. Purchases made included "fiber-optic drones, middle-strike drones, interceptors,” former Defense Minister Mykhailo Fedorov told POLITICO in June.
"Now, in the second half of the year, those funds need to be compensated for and supplemented,” Zelenskyy added. The European Commission offered some relief Monday, approving €6.1 billion in new defense procurement for Ukraine. This latest disbursement from the EU’s €90 billion loan package will fund air-defense missiles and ammunition, as well as radars — among Kyiv’s most urgent needs.
But the money falls far short of what Ukraine says it requires. Ukraine needs about €6.8 billion to €8.5 billion to ensure a “normal start” to next year, the Ukrainian leader said. That money is effectively needed in advance to pay for weapons and other supplies for January 2027.
Around €17 billion more is needed for military salaries, payments to the families of fallen soldiers and other expenses. But domestic politics are also creating obstacles to international funding. Zelenskyy admitted that Ukrainian lawmakers are stalling the implementation of reforms on which some international aid is conditional.
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