Ukraine's finance minister in Brussels appeals for use of frozen Russian assets, warns of fading EU attention
Ukraine's Finance Minister Serhiy Marchenko, speaking at an EPC event in Brussels ahead of a Donor Platform session, called on the EU to find ways to use frozen Russian assets for Ukraine's financing. He warned of major revenue shortfalls, an unresolved 2027 budget gap and fading European attention due to domestic preoccupations in larger EU states.
Key points
- Marchenko spoke in Brussels on 28 September at an EPC think tank event ahead of a Donor Platform for Ukraine session.
- Ukraine's total financial needs stand at $52.6 billion, with firm commitments covering only about $20 billion, leaving an uncovered budget gap of $32.6 billion.
- An additional ~$45 billion military request is not fully included in the budget; Ukraine's Defence Ministry deficit alone is reported at $27 billion.
- Tax and customs revenue is underperforming plan for the first time since 2022, with September shortfalls estimated at ~€400 million and several billion euros projected by year-end.
- Marchenko attributed revenue shortfalls to Russian strikes on industry and the Black Sea export blockade; only one metallurgical combine is still operating and grain exports are at ~40% of capacity.
- Marchenko called on the EU to use frozen Russian assets more effectively rather than push for confiscation, and welcomed the €90 billion EU loan as insufficient.
- Marchenko warned that European attention to Ukraine is fading as larger EU states focus on domestic issues; he also rejected 'money printing' as contrary to IMF commitments.
Why it matters
Ukraine is publicly signalling that its financing math no longer adds up: a $32.6 billion uncovered budget gap, an additional ~$45 billion military request, and tax and customs revenue underperforming for the first time since 2022. By calling on the EU to deploy frozen Russian assets and warning that European attention is fading, Kyiv is escalating both the financial and political pressure on partners at a moment when larger EU states are visibly preoccupied with domestic issues.
What happened
On 28 September, Ukraine's Finance Minister Serhiy Marchenko spoke at an EPC think tank event in Brussels ahead of a Donor Platform for Ukraine session. He laid out Ukraine's financing needs: $52.6 billion in total, with only about $20 billion in firm commitments, leaving a $32.6 billion uncovered budget gap and an additional ~$45 billion military request not fully included in the budget. He reported that tax and customs revenue is underperforming plan for the first time since 2022 — ~€400 million short in September alone and potentially several billion euros by year-end — attributing this to Russian strikes on industry and the Black Sea export blockade, with only one metallurgical combine still operating and grain exports at about 40% of capacity. Marchenko said the 2026 budget can be executed but the 2027 gap of more than $30 billion remains unresolved. He called on the EU to use frozen Russian assets more effectively rather than push for confiscation, welcomed the €90 billion EU loan as insufficient, warned that European attention to Ukraine is fading, rejected 'money printing' as contrary to IMF commitments, and cautioned against raising taxes on legitimate businesses during wartime. In Brussels he also planned meetings with the technical team of Commissioner Valdis Dombrovskis and Commissioner for Enlargement Marta Kos.
How Ukrainian sources describe it
All supplied sources are Ukrainian agencies and media, so coverage centres on Marchenko's own framing: the scale of unmet needs ($32.6 billion uncovered budget gap, ~$45 billion military request, $52.6 billion total), attribution of revenue shortfalls to Russian strikes and the Black Sea blockade, the €90 billion EU package as welcome but insufficient, his call for using frozen Russian assets, his warning that European attention is fading due to domestic preoccupations in larger EU states, and his insistence on preserving legitimate business activity rather than raising taxes during wartime.
Background
The Donor Platform for Ukraine coordinates international partners on Ukraine's short- and medium-term financial needs and budget deficit financing; a session was held in Brussels in this context. Under the EU's €45 billion macro-financial assistance lending program, almost €15 billion has been disbursed with a goal of allocating the full sum planned for 2026; under the Ukraine Facility mechanism, €2.8 billion has been disbursed with another €2.9 billion planned. Around €20 billion in EU budget support remains conditional on Ukraine implementing reforms that unlock further financing, a point raised by European Commission President von der Leyen and IMF Managing Director Kristalina Georgieva.