Ukraine's PM to discuss defence budget gap with EU's Dombrovskis
Ukrainian Prime Minister Serhii Koretskyi is scheduled to hold a video call with European Commissioner for Economy Valdis Dombrovskis on 7 September to discuss EU support for Ukraine's defence budget. The call, planned for 11:00 Brussels time (12:00 Kyiv time), precedes a European Commission meeting with IMF head Kristalina Georgieva on the assessment of Ukraine's budget deficit.
Key points
- Video call between PM Serhii Koretskyi and Valdis Dombrovskis scheduled for 7 September at 11:00 Brussels time (12:00 Kyiv time), lasting about 30 minutes.
- Topics include financing Ukraine, budget needs, and the estimated shortfall in defence spending.
- Ukraine's defence budget gap for the current year is estimated at €27 billion.
- EU officials say Ukraine has not submitted a formal request to bring forward 2027 tranches of the €90 billion EU loan to cover the gap.
- EU loan package of €90 billion is expected to cover only about two-thirds of Ukraine's needs in 2026–2027.
- A European Commission meeting with IMF managing director Kristalina Georgieva is planned for Tuesday to discuss the deficit assessment following the IMF mission's early-September visit to Kyiv.
- On 24 August the European Commission approved €6.1 billion in defence procurement for Ukraine under the €90 billion EU loan.
Why it matters
The talks go to the heart of how Ukraine will finance an estimated €27 billion defence budget shortfall in the current year. They take place against the backdrop of an EU loan package of €90 billion that Brussels itself says will cover only about two-thirds of Ukraine's 2026–2027 needs, and against the absence of a formal Ukrainian request to bring forward 2027 tranches. A follow-on EU meeting with IMF managing director Kristalina Georgieva signals that international lenders are coordinating on the deficit assessment following the IMF mission's visit to Kyiv.
What happened
Ukrainian Prime Minister Serhii Koretskyi was due to speak by video link on 7 September with European Commissioner for Economy Valdis Dombrovskis. The call, scheduled for 11:00 Brussels time (12:00 Kyiv time) and expected to last around 30 minutes, was set to cover EU support for Ukraine's defence budget, the country's overall budget needs and the estimated shortfall in defence spending.
The European Commission said it expected to publish a communication or social media post about the outcome around 13:00 Kyiv time. A day later, on Tuesday, Commission representatives were scheduled to meet IMF managing director Kristalina Georgieva to discuss the assessment of Ukraine's budget deficit following the IMF mission's visit to Kyiv at the start of September.
EU officials have said Ukraine has not sent a formal request for early disbursement in 2026 of the part of the €90 billion loan earmarked for 2027, which could otherwise help bridge the €27 billion defence budget gap in the current year. By the end of 2026 the EU is expected to disburse roughly €20 billion to Ukraine, with new tranches potentially arriving in the coming weeks.
Where reporting differs
Sources treat the €27 billion defence budget gap and the absence of a formal Ukrainian request for early disbursement as established, but the underlying need and any prospective arrangement to bridge it remain under discussion.
Background
On 24 August the European Commission approved €6.1 billion in defence procurement for Ukraine under the EU's €90 billion loan. EU officials have noted that the loan will cover only about two-thirds of Ukraine's needs in 2026–2027. By the end of 2026 the EU is expected to disburse roughly €20 billion to Ukraine, with new tranches possibly arriving in the coming weeks.