The European Union is actively working to find financial resources to cover Ukraine’s state budget deficit, which could reach $19 billion in 2025. This became known during negotiations between the European Commission and EU member states.
This is reported by Finway
Possible Funding Sources and Challenges
Several options for securing the necessary funds are being considered. Among them are providing military support to Ukraine in the form of off-budget grants, allocating loans under the existing G7 support program amounting to up to $50 billion, as well as the possibility of further utilizing frozen Russian assets located in the EU.
As of July 2025, external funding still does not cover the projected budget deficit for Ukraine for the next year. As noted by participants in the negotiations, the situation is complicated by the lack of progress in reaching agreements on a ceasefire and the continuation of the full-scale war with Russia.
“Concerns are growing about next year, and many stakeholders who were counting on a ceasefire agreement this year [to ease fiscal pressure in Ukraine] are forced to reassess their spending and realize that the funding gap remains, no matter how they try to patch it up,” said a senior EU official involved in negotiations with Kyiv.
Preparation for the Ukraine Recovery Summit
The European Commission has already adjusted its spending related to Ukraine in response to the protracted armed conflict and uncertainty regarding its resolution. The search for additional funding sources has become particularly urgent ahead of the summit in Rome dedicated to financing Ukraine’s recovery efforts. European Commission President Ursula von der Leyen will participate in this event.
The International Monetary Fund estimates that Ukraine’s financial needs for the next year could potentially be met only if the war ends in 2025 or by mid-2026; however, this scenario is currently not being considered by either Ukraine or the EU.