The Ministry of Finance of Ukraine has clarified the current situation regarding state funding needs and the budget deficit until the end of 2026. Minister of Finance Sergii Marchenko emphasized the need to clearly separate non-military state budget expenditures from critical security and defense sector needs, which require different funding mechanisms.

International Aid and Non-Military Expenditures

According to the Minister of Finance, Ukraine needs to attract $29.5 billion in international financial assistance by the end of 2026 to cover non-military state budget expenditures. Out of this amount, over $3 billion has already been received by the state accounts. The Minister noted that a financial gap will not occur provided that Ukraine fully fulfills its obligations, including the adoption of necessary laws and resolutions by the Verkhovna Rada and the government.

Defense Financing and EU Instruments

Regarding defense needs, Ukraine has guaranteed funds from the European Union under the USL instrument, intended for the procurement of weapons and drones. By the end of 2026, the country can use another €17 billion from this source. In addition, the Ukrainian side has agreed with the European Commission to speed up the approval of relevant requests for the allocation of these funds, which should simplify their prompt arrival.

Contradictory Data

Despite the availability of guaranteed aid, in August 2026 the Ministry of Defense identified an additional requirement of $27 billion, which persists even after the complete exhaustion of USL funds. While Ukrainian authorities state the need to find additional sources and have already developed a corresponding plan, European Commission representatives claim that the funds currently in the pipeline should suffice until the end of the year due to Brussels lacking financial instruments to close the remaining multi-billion dollar gap in 2026.

Ways to Cover the Deficit and Expert Assessments

To cover part of the emerging need, Ukraine plans to utilize its own savings and expenditure reallocation amounting to over $7 billion, and expects to attract about $12 billion jointly with international partners. Sources of funding for the remaining amount are currently being actively worked out by the Ministry of Finance and the Ministry of Defense. The minister emphasized that having a plan does not mean the complete disappearance of the problem, which requires ongoing dialogue with donors.