The European Union is examining a separate €45 billion in 2027 support for Ukraine, a sum that could cover roughly two-thirds of a funding shortfall estimated at €70 billion, European Commissioner for Economy and Productivity Valdis Dombrovskis said Monday.
Dombrovskis said the European Commission is preparing possible financing routes to present to EU member states. One option under consideration is common borrowing backed by Russian assets, he said; no new mechanism has been approved. He said he was “cautiously optimistic” that a solution could be found.
The potential support would be additional to the remaining €45 billion planned for 2027 under the EU’s existing €90 billion Ukraine Support Loan, which covers 2026 and 2027. On Oct. 30, the Commission asked the Council of the European Union to approve that loan’s 2027 tranche. Its proposal assigns up to €13.3 billion for Ukraine’s budget and €31.7 billion for defense industrial capacity.
The Council must approve the proposal before the Commission can disburse the funds. The Commission said payments could start in early 2027 after approval. The existing loan allocates €30 billion for economic support and €60 billion for defense capabilities and industrial capacity, subject to conditions that include rule-of-law and anti-corruption requirements.
The Commission’s estimate of the 2027 shortfall already incorporated the planned EU contribution for that year and some commitments from international partners, according to an Oct. 19 briefing. The existing loan is financed through EU borrowing on capital markets and backed by the bloc’s budget. The Council says repayment is intended to come from reparations due from Russia.
Reuters reported that EU leaders are expected to discuss a financing route at a special summit Nov. 26-27, as EconoTimes previously reported on the funding talks.
