Ukraine's 2026 budget gap will be covered, EU says
European Commission President Ursula von der Leyen and Ukrainian President Volodymyr Zelenskyy (photo: Getty Images)
Ukraine will close its 2026 state budget deficit through an internal redistribution of funds and cuts to weapons procurement spending, an informed source said.
What the European Commission said
Today, several media outlets reported a statement by European Commission spokesperson Paula Pinho that, following a meeting with Ukrainian diplomats, the EU had concluded that there was no deficit in Ukraine's budget.
"We never said there was a financial deficit. This is what we heard from the reports," media outlets quoted Pinho as saying.
The European Commission spokesperson also recalled that funds remain available under the Ukraine Facility and could still be disbursed this year if Ukraine fulfills the agreed conditions and reforms.
At the same time, the European Union does not plan to allocate this year funds that are scheduled to be disbursed in 2027.
Pinho explained that the EU had concluded that the funds already in the process of being disbursed would be sufficient to meet Ukraine's needs this year.
What the RBC-Ukraine source says
Asked what happened to the deficit previously mentioned by the government and the president, an informed RBC-Ukraine source in the government explained that the money had been found.
"Some of it was redistributed, and some will be taken from weapons spending," the source said.
There is also a solution regarding the funds that Ukraine had wanted to receive from European support scheduled for 2027.
"The Europeans cannot move the funds to this year, but they agreed to reach an arrangement with weapons manufacturers so that they begin production when necessary, while the Europeans will shift payments next year so that everything can be done in the first days of January," the source explained.
Thus, according to the RBC-Ukraine source, the budget deficit for this year will essentially be covered.
"But it depends on when the Rada (Ukraine's parliament - ed.) votes — regarding the portion of these funds that depends on the Rada," the source concluded.
Budget deficit
Ukrainian President Volodymyr Zelenskyy previously said that Ukraine had an enormous funding deficit.
At the same time, Ukrainian Prime Minister Serhii Koretskyi stressed that the Cabinet of Ministers had decided to change its spending priorities. The decision was made because of delays in international aid.
In particular, funding for non-priority expenditures was suspended. These include new construction, reconstruction, and major repairs, as well as urban improvement projects such as developing parks and public gardens, installing fountains, and relaying paving stones.
