Ukraine will face a funding gap even if the war ends by late 2026, the European Commission President warned. “Solutions must be found to cover Ukraine’s urgent financing needs for the period 2026-2027, including military and defense support,” Ursula von der Leyen specifically stated in a letter to EU member states, referring to the latest Leaders’ Summit and their commitment to support Ukraine. The Commission President mentioned in her letter that, based on preliminary IMF forecasts – even if the war ends by late 2026 and all already committed international aid is taken into account – Ukraine will face a significant funding gap requiring new financing.
Von der Leyen: Three options for additional and timely support to Ukraine
To cover Ukraine’s funding gap, the European Commission presents three main options for additional and timely support:
- Financing through grants from member states.
- Limited recourse loan, which would be financed through EU borrowing from markets.
- Limited recourse loan linked to revenues or balances from frozen Russian assets.
The key prerequisites set by the Commission President are rapid availability of funds and fair burden-sharing among international partners. Meanwhile, the European Commission emphasizes the need for collective commitment and swift agreement, especially ahead of the next European Council in December, to maintain pressure on Russia and create conditions for a cessation of hostilities and future peace negotiations.
