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Ukraine cannot stay afloat without EU funding — newspaper

El Pais noted that the Ukrainian government does not know where to find at least €15.4 billion to balance the budget

MADRID, December 15. /TASS/. The Ukrainian authorities will be unable to keep the country afloat without funding from the United States or increased financial support from the European Union, El Pais reported.

Ukraine’s 2026 budget, approved by the Verkhovna Rada, projects a record deficit of $47.5 billion, equivalent to about 18% of the country’s GDP. Uncertainty also remains over external financing following a reduction in US funding, which previously accounted for roughly 30% of total assistance to Kiev.

The newspaper noted that the Ukrainian government does not know where to find at least €15.4 billion to balance the budget. Citing Ukraine’s Economic Strategy Center, El Pais estimated the funding gap at more than €35 billion. The paper warned that the situation could deteriorate further if the European Union does not intervene.

Kiev has acknowledged for several years that it is only able to cover military expenditures from its own budget, while all other spending is financed by Western partners. Recently, Ukrainian authorities have been trying to persuade donors to allow their funds to be used for military purposes, but negotiations on the issue have so far produced no results. Kiev has acknowledged that it has not yet received guarantees from its partners that this funding will be provided.

At a summit scheduled for December 18-19, EU leaders are expected to discuss financing Ukraine in 2026-2027 by expropriating Russian assets under what is described as a "reparations loan." The idea of such a loan has been discussed within the EU over the past two years. Previously, the focus was on using Russian Central Bank assets seized by the EU to help rebuild Ukraine, with the expectation, according to EU officials, that Kiev would return the funds in the future once Russia "pays reparations."

Under a new plan announced by European Commission President Ursula von der Leyen on December 3, the European Commission intends to cover Ukraine’s expenses in 2026-2027, either for ongoing military operations or for rebuilding the armed forces if peace is reached, using the €210 billion in Russian assets to be expropriated.

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