Topic: Budget and taxes
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EU commissioners set conditions in letter to Ukrainian lawmakers on extra defence funding
European commissioners have sent a letter to Ukrainian members of parliament setting out the conditions under which the EU would provide additional financing, responding to Ukraine's request for an extra $27 billion in defence funding. The letter, signed by Economy Commissioner Valdis Dombrovskis and Enlargement Commissioner Marta Kos, spells out legislative commitments Ukraine must meet under the Ukraine Facility and Ukraine Support Loan programmes.
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Ukraine to receive $841 million in World Bank budget support backed by Canada
Ukraine will receive $841 million in World Bank budget support under guarantees from the Canadian government, with the funds earmarked to reimburse state pension expenditures. Prime Minister Serhiy Koretsky announced the disbursement via Telegram, calling it extremely important and timely given the budget deficit. The payment comes as Ukraine works to finalize documents needed to unlock $29.5 billion in international financing this year.
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Ukraine's daily war cost rises to $190 million, budget chief says
Roksolana Pidlasa, head of the Verkhovna Rada budget committee, said at the Yalta European Strategy conference in Kyiv that one day of war now costs Ukraine $190 million — $50 million more than in 2024. She warned that domestic resources are running short of defense needs and that Russian strikes have driven a VAT revenue shortfall.
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Ukraine risks losing part of $29.5 billion in foreign financing without parliamentary votes, PM Koretsky warns
Prime Minister Serhiy Koretsky warned that Ukraine risks losing a significant portion of an anticipated $29.5 billion in international financing if the Verkhovna Rada delays the required legislation, and said the government will send parliament a schedule with clear deadlines for each vote. He described the country's state finances as close to critical and said the government plans to complete its own share of 42 commitments by October 15, having accelerated the timeline from the previously announced November 1 deadline.
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Ukraine plans $2–3 billion war-risk insurance fund for businesses, partly funded by VAT hike
Ukraine's Minister of Economy Oleksandr Kravchenko announced plans for a $2–3 billion insurance fund to compensate businesses for losses from Russian attacks, with payouts targeted to begin on January 1, 2027. The government proposes funding part of the fund by raising VAT from 20% to 21%, a politically sensitive move that has not yet been finalized.
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Ukraine's Defence Ministry confirms payment delays to manufacturers under 'eBally' program
Ukraine's Ministry of Defence acknowledged delays in paying defence manufacturers for equipment supplied under the 'eBally' (єБали) digital bonus program, calling them technical and blaming planned refinancing through EU credit funds and upcoming changes to the points system. The head of the Ukrainian Council of Arms Makers said debt to individual manufacturers ranges from 24 million to hundreds of millions of hryvnias, hitting small companies hardest.
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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.
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Zelensky calls on EU to strengthen sanctions on Russian business, names Fridman and Usmanov
President Volodymyr Zelensky urged the European Union to increase sanctions pressure on Russian business and oligarchs, singling out Mikhail Fridman and Alisher Usmanov. His appeal came as Russia has launched nearly 500 strike drones at Ukraine since the morning of September 12, and as EU ambassadors have again failed to agree on extending personal sanctions ahead of a September 15 deadline.
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Trump–Putin call fuels peace hopes as Ukraine reports $27bn shortfall and deep drone strike hits Russia
US President Donald Trump said after a phone call with Vladimir Putin on 8 September that Putin wants a deal to end the war, raising the prospect of bilateral or trilateral leader-level meetings. US, Ukrainian and European officials publicly doubted Putin's seriousness, while Ukraine disclosed it needs an additional $27 billion to get through the year. The diplomatic activity coincided with a Ukrainian drone strike on a facility in Russia's Yamal region, described by Kyiv as its deepest inside Russia since 2022, and Russian attacks on multiple Ukrainian regions that killed at least six people.
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EU weighs moving frozen Russian assets to new EU-level custodian to sidestep Belgian objections
European circles are exploring transferring frozen Russian assets from Belgium's Euroclear depository to a new EU-controlled custodian, which would shift legal responsibility from Belgium to the EU as a whole and remove Belgium's objections to using the funds for Ukraine. Ukraine's Foreign and Finance ministries have already submitted concrete proposals to Brussels. The European Commission treats the idea as theoretical, with no draft legislation prepared and several technical questions — legal basis, management structure, loss coverage in case of court rulings in Russia's favor — still open.
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Ukraine tells EU it needs additional $27 billion by year-end, prompting surprise in Europe
President Volodymyr Zelenskyy told European partners that Ukraine needs an additional $27 billion by the end of 2026 to cover a defence budget gap. The request, which came during a European visit for Ukraine's Independence Day, surprised officials who had agreed to a $100 billion-plus EU loan earlier in the year. European officials are now examining the size, causes, and justification of the deficit, while Ukraine is also seeking help from the United Kingdom, Canada, and Japan and pressing for the use of frozen Russian sovereign assets held at Euroclear in Brussels.
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Ukraine's government submits three more draft laws to parliament tied to international financing
Ukraine's Cabinet of Ministers approved and sent to the Verkhovna Rada three draft laws needed to attract international financing and cover the state budget deficit. Prime Minister Serhiy Koretsky described the deficit situation as serious and called on lawmakers, regardless of political affiliation, to vote on the package as quickly as possible.
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Ukraine's 2027 budget has $32.6 billion uncovered financing need, finance minister says
Ukraine's Finance Minister Serhiy Marchenko said the country's 2027 budget faces an uncovered financing need of $32.6 billion — the tightest budget situation since the start of the full-scale Russian invasion in 2022. He called on European partners to seek additional sources of financing and presented a new proposal to redistribute roughly $300 billion in frozen Russian assets across all 27 EU member states.
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EU Court of Auditors: 2030 defense readiness goal at risk due to US dependence, fragmented systems
The European Court of Auditors published a report on September 3 warning that the EU is unlikely to achieve its goal of defense readiness by 2030, citing continued dependence on the United States and the fragmentation of national defense systems. The audit, led by ECA member Marek Opiola, notes that despite a 79% rise in EU defense spending from 2020 to 2025, 78% of member states' defense procurement from February 2022 to June 2023 was conducted outside the bloc, with the United States accounting for 63% of that extra-bloc procurement.
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Ukraine's government submits four draft laws tied to €1.45 billion EU tranche
Ukraine's Cabinet of Ministers approved and sent to the Verkhovna Rada, Ukraine's parliament, four draft laws that are conditions for receiving the third €1.45 billion tranche of EU macro-financial assistance and are tied to broader obligations to the EU and IMF. Prime Minister Serhiy Koretsky announced the move, framing it as necessary for unlocking a significant portion of the $29.5 billion in expected partner assistance.
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Ukrainian parliament fails for second time to pass bill ending VAT exemption for parcels under €150
The Verkhovna Rada, Ukraine's parliament, voted down bill No. 15460, which would have abolished the VAT exemption for international parcels valued at up to €150. The bill received 194 votes in favour, 32 short of the number needed for passage. The failure leaves a key condition for IMF and EU financial assistance unmet.