EU Weighs €45 Billion Extra Loan for Ukraine as 2027 Funding Gap Widens

In brief

• The European Commission is exploring a €45 billion loan for Ukraine in 2027.
• The loan would cover about two-thirds of a €70 billion funding gap beyond the existing €90 billion package.
• Russian frozen assets could back the borrowing, but member states have yet to decide.

Funding gap larger than expected

EU Economy Commissioner Valdis Dombrovskis said on Monday, 9 November, that Ukraine's financing gap for 2027 had turned out bigger than planned. The shortfall is €70 billion, and the Union aims to cover roughly two-thirds of it, which means about €45 billion (Єврокомісія визнала більший за очікуваний дефіцит України і шукає ще €45 млрд на додачу до кредиту на 90 млрд – Espreso) (ЄС може надати Україні новий кредит на 45 млрд євро, на додачу до 90 млрд – Європейська правда).

How the money could be raised

The Commission is preparing options for member states, using a borrowing scheme similar to the €90 billion Ukraine Support Loan agreed for 2026 and 2027 (Európska komisia hľadá 45 miliárd eur pre Ukrajinu. Uvažuje sa o pôžičke, eurokomisár je optimistický – HNonline.sk). Dombrovskis described a joint loan backed by Russian assets as one of the main options under review. Such a mechanism would still need approval from national leaders.

Why the earlier package fell short

The current €90 billion loan was adopted after EU leaders failed at a December summit to agree on using frozen Russian assets directly. The original plan would have had the whole EU guarantee the loan, but Czechia, Slovakia and Hungary said they would not take part in that guarantee.

Zelensky's request

In October, President Volodymyr Zelensky asked EU leaders for at least €70 billion in additional financing for 2027, citing defence and state-budget needs (Ukrajina potrebuje viac peňazí. Brusel hľadá cestu k ďalšej pôžičke 45 miliárd eur – Aktuality.sk).

Remaining gap

Dombrovskis said the Commission expected other international partners of Ukraine to provide the remaining roughly €25 billion. He was cautiously optimistic that the €45 billion could be secured, but gave no timeline for a decision.

Read also

• EU Commission Sets Out €45 Billion Mechanism for Ukraine's 2027 Loan Funds
• EU disburses €4.36 billion to Ukraine, including €660 million for defense