European Commission not planning to revise €90B Ukraine aid package despite Kyiv's request

The European Commission currently has no plans to revise the approved €90 billion financial assistance package for Ukraine for 2026–2027, despite Kyiv's request to accelerate disbursements and plug a defense budget deficit of approximately €23 billion, Report informs, citing statements by European Commission Chief Spokesperson Paula Pinho at a briefing in Brussels.

"At the moment, we are focused on what is already provided for under a very ambitious disbursement schedule," she stated, responding to a question on whether a discussion regarding additional funding for Ukraine should be opened given its growing needs and escalation by Russia.

Ukrainian President Volodymyr Zelenskyy last week urged allies to find additional funds to cover the Ministry of Defense's budget deficit. Specifically, he proposed bringing forward a portion of the funds planned for 2027 from the European loan. Kyiv also raised the issue of using frozen Russian state assets once again.

However, the EC indicated that it does not intend to modify the approved mechanism for now. Pinho noted that when the loan was approved, it was assumed that the €90 billion would cover approximately two-thirds of Ukraine's budgetary and defense needs for 2026–2027. The remaining third, according to EU calculations, was expected to be provided by international partners.

"For now, this is precisely where our focus lies," the EC representative said, while acknowledging Ukraine's "extraordinarily high needs" and the necessity to bolster its capacity to deter further Russian aggression.

The European Commission split the loan into two tranches of €45 billion each for 2026 and 2027. Of the funds for the current year, approximately €28.3 billion is earmarked for Ukraine's defense-industrial capability, with €16.7 billion allocated for budget support.

Kyiv, however, contends that the agreed financing is insufficient. Zelenskyy stated that the EU began disbursements only mid-year and that the Defense Ministry's deficit stands at approximately €23.1 billion. This includes personnel costs, social payouts, and arms procurements, incorporating about €6 billion in advance payments for deliveries scheduled for early 2027.

Ukraine's new Minister of Defense, Yevhen Khmara, is also pushing for the early release of part of the €45 billion allocated for next year. According to Reuters, Kyiv is preparing a detailed "war strategy" for international partners featuring a list of necessary projects and expenditures to justify accelerated funding.

Against the backdrop of the cessation of a significant portion of American financial assistance and limited contributions from certain other countries, reliance on third-party partners to cover the shortfall is failing to materialize. Only the United Kingdom and Norway continue to provide substantial support to Ukraine.

Amid these developments, several EU member states are attempting to reopen the controversial issue of using frozen Russian assets to finance Ukraine.

Sweden, the Netherlands, Poland, and Spain called on the European Commission to examine new options for utilizing approximately €210 billion in Russian assets frozen in the EU, the majority of which are held in Belgium's Euroclear.

However, even within the EU, officials acknowledge that the decision remains politically and legally complex. The European Commission stated it would carefully review the proposal from the four nations but has not yet presented a new mechanism.

Thus, a clear contradiction is emerging: Ukraine cites a deficit arising this year and requests that European funding be accelerated or increased, while the European Commission continues to operate on its original calculation of €90 billion over two years and expects other partners to cover the missing third.