The European Union has not supported Ukraine's request for the early provision of additional financing in 2026, emphasizing that the allocation of funds will directly depend on Kyiv's implementation of agreed-upon reforms, the Financial Times reports, citing a letter from European Commissioners Valdis Dombrovskis and Marta Kos to Verkhovna Rada Chairman Ruslan Stefanchuk.
In the summer, Ukraine estimated its additional defense needs at approximately $27 billion and asked the European Commission to prematurely allocate a portion of the funds from the two-year €90 billion Ukraine Support Loan program (€60 billion earmarked for defense, €30 billion for direct budget support). According to the program's parameters, up to €45 billion are to be made available to Ukraine in 2026, with the remaining €45 billion in 2027.
According to FT, the European Commissioners made it clear that access to financing is possible only upon fulfilling an agreed list of commitments. Specifically, this concerns the cancellation of VAT exemptions for small international parcels, the introduction of taxation rules for digital platforms, and proper financial monitoring of politically exposed persons (PEPs), amendments to which raised concerns in Brussels as a departure from the anti-corruption track. According to the publication, meeting these requirements will pave the way for Kyiv to receive about €34 billion in support during 2026.
At the same time, the European Commission emphasized that rejecting the early advance request does not mean halting financial assistance. On October 1, the parties announced the coordination of funding sources for budgetary and defense needs through the end of 2026, confirming the absence of an uncovered financing gap for the current year.
Additionally, on October 2, the European Commission transferred a regular tranche of €2.9 billion to Ukraine under the Ukraine Facility program. Total assistance provided to Kyiv by the EU and member states since the start of Russia's full-scale invasion has reached €227.4 billion.
