Ukraine's PM outlines $56.5 billion in year-end financial needs, split between macrofinancing and defense
Ukrainian Prime Minister Serhiy Koretsky told the Yalta European Strategy forum that Ukraine faces two urgent financial challenges by year-end: $29.5 billion in confirmed macrofinancing at risk of not being received, and an additional $27 billion needed for defense forces. The government pledged to finish its part of the work by mid-October, including submitting required draft laws in September and finalizing all Cabinet resolutions by October 15, while calling on parliament to pass 27 outstanding bills.
Key points
- Two financial blocks: $29.5 billion in confirmed macrofinancing (Ukrainian Support Loan and Ukraine Facility) and $27 billion for defense forces.
- Government must finalize 42 documents — Cabinet resolutions and decisions of government bodies — to access the funds.
- Parliament has 27 draft laws awaiting adoption that are required to unlock the funding.
- Government deadline accelerated from November 1 to October 15; all draft laws to be submitted in September.
- Defense $27 billion covers Special Operations Forces, SBU, border guards, National Guard, and the Ministry of Defense.
- Possible sources for the $27 billion: accelerated Ukrainian Support Loan, frozen Russian assets, loans from non-EU partners, and domestic budget optimization.
- Koretsky said Russian attacks on business could cost the budget roughly 70 billion hryvnias in lost tax revenues.
Why it matters
Ukraine must clear significant legislative and bureaucratic hurdles — 42 government documents and 27 draft laws in the Verkhovna Rada — to unlock $29.5 billion in committed international funding, while simultaneously finding an additional $27 billion for its defense and security agencies by year-end. The government has accelerated its own internal deadline by more than two weeks, from November 1 to October 15, underscoring the urgency. If the funding is not secured, Ukraine may have to turn to loans rather than grants from non-EU partners and consider using frozen Russian assets, raising both financial and political stakes.
What happened
Speaking at the Yalta European Strategy forum in conversation with The Economist editor-in-chief Zanny Minton Beddoes, Prime Minister Serhiy Koretsky laid out two financial blocks Ukraine must resolve by the end of 2026. The first, $29.5 billion, is committed through the EU-linked Ukrainian Support Loan and Ukraine Facility macrofinancing programs but is at risk because the government still needs to finalize 42 documents — Cabinet resolutions and decisions of government bodies — and parliament must still adopt 27 draft laws. Koretsky said the government would submit all required draft laws in September and complete its own paperwork by October 15, accelerating an original November 1 deadline. The second block is a new $27 billion requirement from Ukraine's Defense Forces, covering the Special Operations Forces, SBU, border guards, National Guard, and the Ministry of Defense. Possible sources Koretsky identified include accelerating the Ukrainian Support Loan, using frozen Russian assets, additional loans from partners outside the EU, and optimization of expenditures within Ukraine's own budget. He also noted that Russian attacks on Ukrainian business could cost the budget roughly 70 billion hryvnias in tax revenues. Koretsky criticized the pace of parliamentary work and urged deputies to pass the necessary legislation regardless of political considerations, while stressing the government is fully prepared to cooperate with parliament on every wording.
Background
The $29.5 billion is tied to two existing EU-linked macrofinancing instruments: the Ukrainian Support Loan and the Ukraine Facility. The $27 billion defense need covers the Special Operations Forces, SBU, border guards, National Guard, and the Ministry of Defense. Koretsky separately noted that Russian attacks on Ukrainian business could deprive the budget of roughly 70 billion hryvnias in tax revenues.