Kyiv is turning to international partners to help cover its wartime spending needs, with Brussels set to bring together donor countries and financial institutions on Tuesday.
Ukraine has cut its $27 billion (€23.7 billion) funding shortfall to $20 billion (€17.6 billion) through austerity measures, Prime Minister Serhii Koretskyi said on Sunday, although he warned that it “remains an open question” how to plug the remaining gap.
The spending cuts will affect areas including road repairs and cultural projects, while military salaries will be protected.
“We are looking for optimisation and redistributing available sources to set priorities. The armed forces are the top priority for all of us,” Koretskyi said in an interview with the TSN news outlet, stressing that military salaries will be protected.
“The priority is whether it leads to survival or not. This is the only approach to making certain decisions,” he said.
Kyiv is in talks with the European Commission, the International Monetary Fund (IMF) and other allies over how to plug the budget hole, which affects the Ministry of Defence and risks delaying much-needed weapons deliveries.
Russia’s recent escalation has added urgency to the search for funding.
“With joint efforts, we have not yet found a way to cover these expenses,” Koretskyi said.
The prime minister insisted the $27 billion was not a request for fresh money, as the figure was already part of the annual war costs, estimated at $155 billion (€136.3 billion), that Ukraine communicated to allies in February.
Ukraine sent the Commission a similar assessment as Brussels prepared its €90 billion support loan, he said. The loan has been split evenly, with €45 billion earmarked for 2026 and another €45 billion for 2027, and payments already underway.
Ukrainian officials have floated the idea of frontloading a share of the loan, but that would leave less money next year and could worsen the situation.
Commission officials are still trying to pin down the precise extent of the budget deficit and have urged Ukraine to speed up reforms to unlock roughly €20 billion in financial aid available this year.
Brussels will host a new meeting of the Ukraine Donor Platform on Tuesday with representatives from allied nations and financial institutions.
“We want to bring together international partners ready to discuss how we can bridge the budgetary gap,” a Commission spokesperson said.
Source: www.euronews.com
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