EU urges Ukraine to complete reforms as funding gap widens

The European Union has told Ukraine to push ahead with agreed reforms to unlock further financial support, as Kyiv warns that it faces a substantial budget shortfall this year. EU enlargement commissioner Marta Kos delivered the message at a donor meeting in Brussels on Tuesday. She said Ukraine’s partners needed confidence that financial assistance was being used effectively, and that reforms were central to maintaining that trust.

The EU is currently making instalment payments from a €90 billion loan intended to help Ukraine keep its state functioning through the end of 2027. However, the Ukrainian government says it needs an additional $20 billion to cover this year’s deficit and has asked Brussels to accelerate payments. EU officials say they are examining options to meet Ukraine’s financing needs.

They also say Kyiv has not fully explained the figures behind its request and should prioritise reforms needed to release funding already allocated for this year. In a letter to Ukraine’s parliamentary speaker this month, Brussels said more than €20 billion in EU financial assistance remained available before the end of 2026, provided that Ukraine carries out the required reforms. The issue is receiving increased scrutiny amid several high-profile corruption scandals in the country.

Ukrainian Prime Minister Sergiy Koretsky told local media over the weekend that the deficit was $27 billion, while the government would find $7 billion through domestic savings. One possible EU response would be to bring forward payments under the existing loan, but officials warn this could exhaust the fund earlier than planned. The EU is also pressing Britain, Canada and Japan to help cover the gap.

Some member states have renewed calls to use frozen Russian central bank assets, but Belgium, where most of the funds are held, remains opposed.