The European Fee is discussing with EU member states varied choices to cowl Ukraine's funds deficit for subsequent yr, which might vary from $8 billion to $19 billion, the Monetary Occasions reported on July 8.
Worldwide companions have offered Ukraine with over $39 billion for its wartime financial system thus far this yr, Prime Minister Denys Shmyhal introduced.
The monetary gap in Ukraine's funds is linked to decreased U.S. assist and the shortage of prospects for a swift ceasefire with Russia that Europe had hoped for, the Monetary Occasions reported.
A senior EU official instructed the publication that a lot of Ukraine's companions had beforehand counted on a peace deal in 2025, however at the moment are compelled to revise their funding plans.
This contains the European Fee, which has already adjusted spending from Ukraine-related funding streams.
With out assist from Western companions, Kyiv would face a funds deficit of $19 billion in 2026, in response to the Monetary Occasions. Nonetheless, even when further worldwide financing for the wartime financial system could be secured, a niche of at the very least $8 billion would stay.
To assist Ukraine's funds, Europe is contemplating offering army support within the type of off-budget grants that might be recorded individually as exterior transfers however would depend towards NATO member international locations' nationwide protection spending targets.
One EU diplomat instructed the Monetary Occasions that army assist for Ukraine is considered as a contribution to the protection of all of Europe.
In a doc for G7 international locations reviewed by Monetary Occasions, Kyiv proposed that European allies co-finance Ukrainian forces, framing this as a service to strengthen continental safety.
Different assist choices beneath dialogue embody doubtlessly accelerating funds from the prevailing $50 billion G7 mortgage program and reinvesting frozen Russian property in higher-yield monetary devices that the EU allotted to assist service the debt.
In accordance with the Monetary Occasions, two sources confirmed that the fee deliberate to debate these choices with EU finance ministers on July 8.
The funding situation can even be raised on the Ukraine Restoration Convention in Rome on July 10-11, devoted to Ukraine's reconstruction wants. European Fee President Ursula von der Leyen will attend the occasion.