European Commission cites lack of instruments to cover the $27 billion defense deficit
The European Commission does not plan to provide Ukraine with additional funds for defense needs totaling $27 billion this year due to the absence of appropriate mechanisms. Finance Minister Sergii Marchenko explained that the situation concerns military expenditures, while budget needs will be covered through the implementation of reforms. This was reported by Delo.ua citing Dilo, according to the portal PromPolitInform.
According to the head of the Ministry of Finance, Sergii Marchenko, it is necessary to clearly distinguish between state budget funding and defense expenditures. For state budget needs, Ukraine expects to receive $29.5 billion from partners by the end of the current year, of which $3 billion has already been credited to accounts.
Military and budget deficits
Sergii Marchenko noted that the additional requirement for the Armed Forces of Ukraine stands at $27 billion. Out of this amount, $7 billion was accumulated through internal cost-cutting, while another $12 billion is planned to be raised through joint efforts. The European Commission is currently unable to cover the remaining balance due to technical limitations.
Commitments to partners
The Minister emphasized that receiving the planned aid depends directly on Ukraine fulfilling its commitments and implementing reforms. Kyiv continues negotiations with the EU regarding the acceleration of request processing and also expects to receive €17 billion under the Ukraine Support Loan program for the defense sector.
Brussels’ position
The European Union is currently analyzing the formation of the defense deficit and the validity of the stated needs. Furthermore, Brussels has confirmed its intention to adhere to the previously agreed-upon schedule of payments under the €90 billion credit package over two years, without considering options for early or accelerated funding despite the increase in requests from Kyiv.
Photo: Facebook / Sergii Marchenko
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