EU plans to cover two-thirds of Ukraine’s €70 billion financing gap for 2027
The European Union plans to provide about €46.7 billion, or two-thirds of the additional €70 billion Ukraine requested for 2027. The European Council has asked the European Commission to develop financing options, while EU leaders consider a new joint loan and the EU is seeking contributions from partners outside the bloc, including the UK, Canada and Norway.
Key points
- The EU plans to cover two-thirds of Ukraine’s €70 billion additional financing request for 2027, amounting to about €46.7 billion.
- Ukraine requested an additional €70 billion in 2027 to help fund defence, weapons procurement and economic stability.
- The European Council asked the European Commission to prepare options for covering Ukraine’s €70 billion budget deficit in 2027.
- EU leaders are considering a new loan financed through common borrowing as a priority option.
- The EU has asked non-EU partners, including the United Kingdom, Canada and Norway, to help finance the request.
- Hungary, Slovakia, Czechia and Bulgaria said they would not participate in a new loan for Ukraine but would not prevent other EU members from proceeding.
- An already approved €90 billion facility provides for disbursements in 2026 and 2027.
Why it matters
A potential EU contribution of €46.7 billion could cover a substantial share of Ukraine’s projected 2027 budget deficit and help sustain essential state functions, defence and weapons purchases. The proposed joint-borrowing model and contributions from non-EU partners would distribute the financial burden across several countries. However, disagreements among EU members and the remaining negotiations over funding mechanisms could affect whether a final decision is reached in December.
What happened
President of the European Council António Costa said the EU would provide two-thirds of the additional €70 billion Ukraine requested for 2027. Ukraine’s request is intended to cover defence spending, weapons procurement and support for stability. The European Council tasked the European Commission with preparing proposals to address the country’s €70 billion budget deficit in 2027. EU leaders are considering a new loan based on common borrowing as the leading option, while the possibility of additional borrowing has not been excluded. The EU also approached partners outside the bloc, including the United Kingdom, Canada and Norway, to help cover the request.
How Ukrainian sources describe it
Ukrainian reporting focuses on the scale of the €70 billion request, the EU’s planned contribution of two-thirds and the expectation that the remainder will come from allies outside the EU. It also highlights diplomatic efforts involving the United Kingdom, Canada and Norway, as well as the proposed joint loan as a priority financing mechanism.
How international sources describe it
International coverage highlights the negotiations among EU member states, including the opposition of Hungary, Slovakia, Czechia and Bulgaria to taking part in a new loan while allowing others to proceed. It also notes differing positions on funding mechanisms: Belgium rejected using frozen Russian assets, while Germany left the possibility of new borrowing open.
Background
Ukraine already has an approved €90 billion facility covering disbursements in 2026 and 2027. The European Council asked the European Commission to prepare options for covering the additional €70 billion deficit in Ukraine’s 2027 budget. EU leaders were weighing a new loan financed through common borrowing, and additional borrowing had not been ruled out.