EU may need new Ukraine loan on table next year — WSJ
Ukraine may push for new EU funding (photo: Getty Images)
The European Union may face the need to approve a new loan for Ukraine as early as 2027. Despite a recently signed $105 billion agreement, Kyiv's funding gap continues to grow, according to The Wall Street Journal.
Budget deficit, new borrowing
The outlet says the €90 billion loan agreement (about $105 billion) was meant to cover two-thirds of Ukraine's budget and defense financing needs through the end of next year. However, European officials warn that these funds may not be sufficient.
Diplomats say Ukraine's financing gap for next year has increased compared to initial estimates. Kyiv will need at least an additional €19 billion to cover budget expenditures in 2026.
This means EU leaders may have to seek another loan worth tens of billions of euros within 12 months, the report says.
US's role, Zelenskyy's stance
Ukraine has become more reliant on the EU as the administration of US President Donald Trump has halted direct military aid and shifted its focus to conflicts in the Middle East.
At the same time, Ukrainian President Volodymyr Zelenskyy stressed that the US support remains critically important, especially in intelligence sharing and air defense capabilities.
"During the war, we need everything and everyone. We need the United States," the president said ahead of a summit in Cyprus.
Zelenskyy also expressed hope that Ukraine's financial resilience would push Russia toward negotiations by demonstrating that the country's resources are not exhausted.
EU financial aid, new sanctions
On April 22, EU ambassadors gave preliminary approval to a €90 billion loan for Ukraine and also backed the introduction of a 20th package of sanctions against Russia. The decision became possible after Hungarian Prime Minister Viktor Orbán, who had long blocked support for Kyiv, was defeated in elections.
Volodymyr Zelenskyy said that unlocking €90 billion sends a clear signal to Russia that it must end the war. He stressed that increasing financial and sanctions pressure should force Moscow to come to the negotiating table.
In addition, Ukraine's leader emphasized that these funds are strategically important for the defense sector. In particular, thanks to the European loan, Ukraine will be able to double the production of interceptor drones, which are critical for defending against Russian air attacks.
