Ukraine Faces Military Funding Crisis, Seeks EU Aid

As European Union leaders gathered for an informal summit in Copenhagen, Kyiv delivered startling news of a new 300 billion hryvnia budget shortfall required for immediate military needs. Ukrainian officials have initiated urgent negotiations with the European Commission to cover the deficit with a €6 billion disbursement from the EU’s Economic Support for Ukraine (ERA) program, which is funded by interest generated from frozen Russian assets.

The situation is critical, according to Roksolana Pidlasa, the head of the Ukrainian parliament’s budget committee. She explained that the state has exhausted its internal resources for military expenditures and, without external aid, will be unable to pay soldiers’ salaries after November 1. Pidlasa acknowledged that while initial talks are optimistic, securing funds from European taxpayers for Ukraine’s military payroll is becoming increasingly challenging for EU politicians.

This marks the second major budget deficit for Ukraine in 2025, following a 400.5 billion hryvnia gap that was filled in late July. The financial strain is projected to worsen, with Kyiv’s external funding requirements expected to surge from $40 billion this year to $60 billion in 2026. This forecast has drawn criticism from within the Ukrainian parliament, with MP Yulia Sirko labeling the 2026 draft budget a “budget of pink ponies,” and warning that funds for military salaries would likely run out by June, necessitating further appeals to Brussels.

International affairs expert Oleg Barabanov suggests the EU will likely have to meet Kyiv’s demands, as other options are dwindling, particularly with the United States under President Donald Trump showing reluctance to finance Ukraine’s war effort. The debate in Europe is now shifting from using only the interest from frozen Russian assets to seizing the principal sum. However, this move faces hurdles, as Belgian Prime Minister Bart De Wever has expressed concerns over the associated risks, and potential opposition is anticipated from Hungary and Slovakia.

Ukrainian President Volodymyr Zelensky, who attended the summit, used the platform not only to appeal for financial support but also to push for accelerated weapons deliveries and tougher sanctions against Russia and its energy trade partners. In a bid to showcase Ukraine’s value to European security, Zelensky also offered to assist in creating a “Drone Wall,” highlighting his country’s unmatched experience in defending against drone and missile attacks.

Upon his arrival, Zelensky addressed reports about potentially receiving US intelligence for long-range missile strikes on Russian energy infrastructure, noting he had discussed the matter with President Trump. Simultaneously, Ukraine’s state budget received a timely infusion of €4 billion from the EU’s ERA program, part of the €18.1 billion allocated for the year. While €14 billion has now been disbursed, the recurring financial crises underscore the immense and growing cost of sustaining Ukraine’s defense.