Ukraine’s new defence minister Yevhenii Khmara has said Kyiv would try to bring forward part of a European Union loan planned for 2027 in order to close a $27 billion (€23.2 billion) shortfall in this year’s military budget, and would put a detailed war plan to allies in support of that request.
Khmara, a former special forces commander confirmed in the post by Ukraine’s parliament on August 19, spoke to reporters in comments released on August 30.
“There is a $27 billion shortfall in defence funding, and the ministry already has options for addressing it. The first avenue is to bring forward part of the European loan planned for next year,” Khmara said.
A second track, he added, is to seek more money from countries that have not yet joined the existing financial framework or that could raise their contributions.
The ministry has already identified partners for separate talks on specific defence needs.
He told reporters that Ukraine would present “a clear vision and a clear plan: what tasks the Defence Forces face, what projects are needed for this, what results must be achieved, and within what timeframes.”
No final decision has been taken on how the whole gap will be filled.
President Volodymyr Zelensky set out the figures on August 24 at a meeting of the Coalition of the Willing in Kyiv, held as Ukraine marked its 35th Independence Day.
He put the defence shortfall at $27 billion, or about €23.2 billion at the European Central Bank reference rate of August 28. Zelensky said the gap was not the product of a sudden extra bill.
The Defence Ministry used money meant for the second half of 2026 to cover the first six months, including drone production and other urgent purchases. Those sums now have to be replaced, and spending through the rest of the year still has to be financed.
Of the $27 billion, roughly $20 billion (€17.2 billion) would go on military pay, payments to families of the dead and other running costs.
Between $8 billion and $10 billion (€6.9 billion to €8.6 billion) is needed in advance for weapons and supplies due in January 2027.
Zelensky said filling the gap was necessary if Ukraine was to stay “competitive with the number of deep strikes” against Russia.
“We need more money, much more,” he said.
The EU’s Ukraine Support Loan, agreed at the European Council in Brussels on December 18, 2025 and adopted in February 2026 as Regulation (EU) 2026/467, is worth €90 billion for 2026 and 2027.
Czechia, Hungary and Slovakia opted out of backing it, leaving the other 24 member states to proceed under the enhanced cooperation procedure.
The loan agreement was signed in Brussels and Kyiv on May 27 and ratified by Ukraine’s parliament the following day. The first disbursements were made in June.
It is split into two annual envelopes of €45 billion. €60 billion of the total is earmarked for defence, including procurement and Ukraine’s defence industry, and €30 billion is for the State budget.
For 2026, up to €28.3 billion is ring-fenced for defence and €16.7 billion for budget support.
Ukraine will repay the loan only if it receives Russian reparations. The EU budget covers the interest and the European Council has said it reserves the right to draw on frozen Russian assets.
The government still depends on foreign finance to keep the war going.
The EU loan is meant to cover about two-thirds of external needs for 2026-2027. Other allies, including Britain, Canada and Norway, have made separate pledges.
US budget support has been thinner than in earlier years of the war.
The European Commission approved a further €6.1 billion in defence procurement for Ukraine on August 24, the day of the Kyiv meeting.
Meanwhile, Russia’s Defence Ministry said on August 30 that it was preparing “massive strikes” on Ukraine’s energy infrastructure, casting them as retaliation for Ukrainian attacks.
“Russian forces have begun preparations for massive strikes against facilities in Ukraine’s energy sector in response to the ongoing attacks by the Kyiv regime on Russia’s civilian infrastructure and fuel and energy facilities,” it said on Telegram.
The European Commission has approved €6.1 billion or Ukraine to buy air and missile defence systems, missiles, ammunition and radars. https://t.co/zKMSbpzgMq
— Brussels Signal (@brusselssignal) August 24, 2026
