Update (October 17): On September 1, after an informal meeting of EU defence ministers, Ireland’s Helen McEntee said “a significant number of member states” supported Ukraine’s request to bring forward part of the loan, Mezha reported. But on October 1, Bloomberg reported that the EU would not yet advance money planned for 2027: the European Commission wants Kyiv first to carry out agreed reforms and draw the 2026 funds already available. About €15 billion of the €45 billion available for 2026 had been transferred by then, according to the same report.
Kyiv/Brussels, August 31: Ukraine’s new defence minister, Yevhenii Khmara, says Kyiv will give its partners a clear outline of its war needs, projects, expected results and timelines. The immediate aim is to receive early part of the European Union loan set for next year and close a gap of about $27 billion in Ukraine’s military budget, Reuters reported.
The proposal is not approval of a new $27 billion loan. Ukraine wants some of the €45 billion planned for 2027 to be brought forward into 2026. The EU has arranged €90 billion in support loans for 2026 and 2027, with €45 billion for each year.
Key highlights
- Khmara promised partners a plan setting out tasks, projects, expected results and deadlines.
- Kyiv wants part of the EU loan money planned for 2027 to be released in 2026.
- The EU’s Ukraine Support Loan totals €90 billion for 2026–27, or €45 billion a year.
- Ukraine will also ask existing donors for more and seek new supporters.
- Early release is a request; no decision had been announced.
What is Ukraine’s “clear plan”?
Speaking to reporters on Sunday, Khmara said Ukraine would tell partners what tasks the defence forces face, which projects are needed to achieve them, what results are expected and by when. According to Reuters, Kyiv will also seek larger contributions from existing donors and new support from countries that have not yet given aid.
Khmara is a former special forces commander associated with Ukraine’s campaign of long-range drone strikes deep inside Russia. He said he shares a common vision with the new top military commander, Mykhailo Drapatyi, and that war priorities must reach commanders and front-line units clearly, so that resources are not scattered and decisions save soldiers’ lives.
Why there is a $27 billion gap
President Volodymyr Zelenskyy has said defence spending in the first half of 2026 was higher than expected. A long war, shortages of air defence, the need for troops, weapons production and infrastructure damaged by Russian attacks have all added to the financial strain, while the government must also keep paying soldiers and running essential services. Khmara links the gap to the defence ministry’s military funding needs, not to Ukraine’s entire state budget.
| Item | Amount | Note |
|---|---|---|
| EU Ukraine Support Loan, total | €90 billion | For 2026 and 2027 |
| Per year | €45 billion | Planned for each of 2026 and 2027 |
| Ukraine’s reported defence gap | About $27 billion | Military needs, not the whole budget |
| What Kyiv is asking for | Part of the 2027 tranche, early | Amount not specified |
Our calculation: the $27 billion gap is in dollars and the EU tranches are in euros, so the two cannot be compared one-for-one without an exchange rate and a time frame. What matters is that the gap is large relative to a single year’s €45 billion tranche, which is why Kyiv is asking to draw on next year’s money now.
How the EU loan works
The European Commission prepared in March to implement the €90 billion Ukraine Support Loan. It said the package aims to speed up urgent defence purchases alongside budget support in 2026–27, and the first list of defence products put weight on drones. The Commission’s official document sets out the preparations to make €45 billion available for 2026 and the procurement process.
Money is not released by political announcement alone. EU institutions must assess the financial strategy, procurement rules, monitoring and reform conditions. Releasing part of the loan early may need agreement from member states and EU institutions, cash-flow arrangements and legal changes. Khmara’s proposal is a request; it cannot be said that early payment has been approved.
The military side of the strategy
Kyiv wants to seize the initiative by expanding long-range drone strikes on Russian oil infrastructure, defence manufacturing and logistics. It also wants more interceptors to protect cities from Russian missiles and fast jet-powered drones; Khmara said four possible interceptor systems have been tested. Despite new technology, troop shortages, recruitment and air defence remain among Ukraine’s hardest problems, and more money does not automatically bring military success. Partners will want to see which projects the money goes to, how fast purchases happen, how domestic production grows and who monitors results.
Pressure on war logistics is also rising inside Europe. Germany is preparing a response with EU and NATO partners to the suspected drone incident at Leipzig/Halle airport. German officials have not blamed any country, but the incident has put the security of military supply routes in focus.
Political risk and accountability
Khmara replaced Mykhailo Fedorov at a time of intense domestic debate over war management, alleged abuses in recruitment and the use of resources. Donor countries also stress anti-corruption systems, transparent procurement and independent monitoring of results. It would be simplistic to see these conditions only as an excuse to delay war aid; accountability for public money is also the basis for keeping European support. Kyiv’s challenge is to show that fast disbursement and strict oversight can go together.
What to watch
- A formal response from EU institutions or member states.
- How much Kyiv wants early, and which projects it prioritises.
- How much of the $27 billion gap other allies cover.
What it means
For now, Ukraine has promised to present a plan; the final decision on releasing money is still pending. The request shows how the cost of a long war is pushing Kyiv to draw on future aid, and how donors are tying faster money to clearer plans and reforms.
This article was first published in Hindi and has been translated. The Press of Asia now publishes in English only.
Sources
- Reuters (via Investing.com): report on Ukraine’s defence chief pledging a clear war plan to win early loan release
- European Commission: Ukraine Support Loan press release (PDF)
- Mezha: EU Countries Support Advancing Part of Ukraine’s €90 Billion Loan
- Kurs.com.ua: Bloomberg: EU refused to accelerate payments to Ukraine and demanded reforms
The International Desk covers world and Asian affairs, diplomacy and conflict, with a focus on what they mean for India. Stories are checked against at least two credible sources before publication.
