EU rejects Ukraine’s request for urgent loan payments, sets new condition - Bloomberg
Illustrative photo: EU rejects Ukraine's request for early financing (RBC-Ukraine collage)
The EU has rejected Ukraine's request to accelerate loan disbursements to cover an unexpected deficit in military financing and is demanding that Kyiv implement reforms more actively, according to Bloomberg.
According to Bloomberg, this summer Ukraine acknowledged that it faces an additional funding deficit of 27 billion euros ($30.4 billion) due to rising war costs.
In this regard, Kyiv appealed to Brussels with a request to accelerate the disbursement of a 90-billion-euro loan, which is scheduled to be disbursed through the end of 2027.
According to sources, the EU disputed some of Ukraine's calculations.
Brussels stated that early payment would only create a new financial problem for 2027 and suggested attracting additional financing from other partners - specifically Canada, Norway, and Japan.
During a meeting in New York, European Commission President Ursula von der Leyen noted that Brussels has 37 billion euros in budget support allocated for 2026.
However, these funds are strictly linked to progress in key reforms - combating the shadow economy, increasing tax revenues, and harmonizing legislation with EU norms - which are currently stalled in parliament.
"We have identified the means to cover Ukraine’s budget and defense needs for 2026. We have also reconfirmed the steps needed to ensure their timely release," reads a joint statement by the European Commission and Ukraine.
According to the statement, 45 billion euros from the 2027 loan will be distributed quickly, but no earlier than the beginning of next year.
Ukrainian President Volodymyr Zelenskyy announced that Ukraine and its partners would coordinate their actions monthly to resolve this issue.
According to International Monetary Fund estimates, Ukraine will face a funding deficit of $30–35 billion in 2027, $17 billion in 2028, and $2 billion in 2029.
IMF spokesperson Julie Kozak confirmed that the fund would hold negotiations with Kyiv and international partners regarding the potential size of the deficit and combine reviews of the $8.1 billion financing program by December.
"The plan was subject to securing sufficient and credible financing assurances," emphasized Julie Kozak.
The EU can provide Ukraine with nearly 37 billion euros in financial support by the end of 2026.
At the same time, Brussels made it clear that further allocation of funds directly depends on the progress of key reforms in Ukraine.
Additionally, during a tense meeting in New York, European Commission President Ursula von der Leyen and Ukrainian President Volodymyr Zelenskyy discussed further steps regarding support.
Following the negotiations, Brussels presented Kyiv with a number of specific requirements, the fulfillment of which is a mandatory condition for increased assistance.
