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The European Union has rejected Ukraine’s request to accelerate additional financial support for 2026, while stressing that further funding remains available if Kyiv implements the reforms linked to the aid, the Financial Times reported.
Ukraine had asked the European Commission to bring forward part of the EU’s €90 billion Ukraine Support Loan for 2026–2027 to help cover a projected $27 billion defense funding shortfall. Under the existing framework, up to €45 billion was allocated for Ukraine in 2026, with funding tied to agreed conditions and reform benchmarks.
According to the FT, only €15.7 billion had been disbursed under the relevant 2026 arrangements at the time of its report, with delays in meeting reform requirements contributing to the slower release of funds. The EU said Ukraine could still unlock up to €34 billion in additional support this year by completing the required reforms.
The dispute comes as Russia has intensified attacks on Ukrainian civilian and energy infrastructure ahead of winter. Ukrainian President Volodymyr Zelenskyy has called for additional resources to expand production of drones and interceptor systems and to strengthen the country’s defense capabilities.
At a joint meeting on October 1, Ukraine and the European Commission said they had identified ways to cover the country’s budgetary and defense needs for 2026 and confirmed the steps required to ensure timely financing. The statement did not mean that all requested funds would be released immediately.
Among the reforms linked to future funding are changes to the taxation of small parcels and digital platforms. The Ukrainian parliament has adopted the relevant legislation, but an amendment concerning politically exposed persons (PEPs) has raised concerns in Brussels because EU officials consider maintaining strong anti-corruption safeguards essential for continued financial support.
EU Commissioners Valdis Dombrovskis and Marta Kos reportedly told Ukrainian parliament speaker Ruslan Stefanchuk that additional financial assistance for 2026 remained available provided that Kyiv meets the necessary reform conditions. The FT quoted the officials as describing the avoidance of any weakening of Ukraine’s PEP regulations as “critically important.”
At the same time, EU financial assistance has continued. On October 2, the European Commission announced a €2.9 billion disbursement under the Ukraine Facility. The Commission said the payment followed Ukraine’s progress in implementing reforms under its Ukraine Plan.
The broader €90 billion Ukraine Support Loan covers 2026 and 2027, with €60 billion designated for defense capabilities and €30 billion for budget support. EU funding is released in accordance with agreed conditions and Ukraine’s evolving financing needs.
The issue remains tied to Ukraine’s ability to meet reform benchmarks while addressing urgent wartime budget and defense requirements.
