EU rejects Ukraine's request for €27bn in additional financing, Bloomberg reports

October 1, 2026 at 09:59 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The European Union has rejected Ukraine's request for €27 billion in additional financing to cover its growing budget deficit, Bloomberg reported citing informed sources. The EU instead proposed that other partners, including Canada, Norway and Japan, provide the extra funding. The bloc is set to disburse €45 billion from a 2027 loan early next year, but not before then.

Key Facts

Ukraine faced an additional financing gap of €27 billion ($30.4 billion) due to rising military spending, according to Ukrainian authorities.
The EU will disburse €45 billion from a 2027 loan, but not before the start of next year.
European Commission President Ursula von der Leyen said in September that the EU still has €37 billion for budget support in 2026, tied to reform progress.
Ukraine's Finance Ministry estimated the country needs nearly $146 billion in external financing for 2026–2029.
The IMF projected Ukraine faces a financing gap of up to $54 billion through 2029.

EU Rejection

The European Union rejected Ukraine's requests for new financing to cover its economic deficit, Bloomberg reported citing informed sources. The agency compared the move to 'slamming the door' on Ukraine's path to new money. EU officials argued that advancing loan payments would create problems in 2027. The EU proposed that other partners, including Canada, Norway and Japan, provide additional financing to Kyiv.

Funding Gap

Ukrainian authorities acknowledged an additional financing deficit of €27 billion ($30.4 billion) due to rising military expenditures. Kyiv asked Brussels to accelerate the disbursement of a €90 billion financing package to cover the unexpected military funding shortfall this year. The EU will 'quickly' allocate €45 billion from a 2027 loan, but not before the beginning of next year. At the same time, work will begin on 'identifying additional budgetary and defense needs'.

Conflicting Assessments

European Commissioner for Economy Valdis Dombrovskis said Ukraine's 2026 budget needs are largely covered and may be less acute than Kyiv claims. He stated that the European Commission and IMF have not yet confirmed the $27 billion shortfall calculation. At a September meeting with Ukrainian President Volodymyr Zelensky in New York, European Commission President Ursula von der Leyen said the EU still has €37 billion for budget support in 2026. She linked the release of those funds to progress on key reforms targeting the shadow economy, tax revenue increases, and alignment with EU legislation, which are currently stalled in parliament.