The European Commission is looking into how to front-load the second half of the EU €90 billion loan allocated for the whole of 2027 to the first part of the new year.
Brussels has faced calls to front-load disbursement to Ukraine as the country, according to the government in Kyiv, faces a €23.5 billion budget shortfall this year.
To head off a crisis and as tough winter approaches, Commission officials now contemplate moving the bulk of the second €45 billion tranche spread across next year to the first part of 2027 to meet urgent Ukrainian needs.
Kyiv estimates it faces a $32.6 billion (€28.4 billion) shortfall in 2027.
In December, EU leaders agreed to a €90 billion loan to Ukraine with security in the EU’s common budget – to be disbursed over two years, €45 billion in 2026 and 2027 respectively.
The Commission has yet to put a number on Ukraine’s financial shortfall, but has already signalled that Russia’s constant bombardment by Russia is certain to increase Ukraine’s financing needs.
“Russia has changed their strategy to go after budget income, tax income and the like,” Philipp Lausberg, a senior policy analyst at the European Policy Centre told Euractiv pointing to recent attacks on Ukrainian steelworks and other manufacturers.
Ursula von der Leyen, the Commission president met with Volodymyr Zelenskyy on the sidelines of the UN General Assembly in New York on Tuesday.
While the Ukrainian president pushed for expedited deliveries of air defences, von der Leyen pressed Zelenskyy to deliver reforms to unlock EU funds, according to an official with knowledge of the meeting.
Ukraine has yet to receive a combined €37 billion this year from the EU loan and the European Peace Facility. Yet, EU officials in Brussels are increasingly frustrated of slowing reform momentum in Ukraine.
Europe’s war to fund – and lose
But while front-loading might solve issues in the short to medium term, it boosts the impetus to find a long-term solution to Ukraine’s financial needs.
“I think it is clear that Ukraine is running out of money more quickly than we thought,” Lausberg said.
The EU loan, agreed oin December last year, was originally intended to cover two-thirds of Kyiv’s funding needs for 2026 and 2027, with other non-EU countries including the UK, Canada, and Japan covering the remaining third, €45 billion.
But beyond an $8.1 billion IMF loan spread over four years and Norway’s proposed €7.8 billion in military and civilian support for 2027, the EU is struggling to convince allies to pay up.
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Read the article 3 times - no signs of the plan, only "we need to find more money". WHERE? In our pockets again?
Maybe, warmongers should get themselves a tank and a couple of rifles and go to Ukraine themselves?
🌒@EastCalling
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