LONDON

European Commission President Ursula von der Leyen has warned that Ukraine will face a major financial shortfall in the coming years, urging EU member states to consider new funding mechanisms, including the possible use of frozen Russian assets.

In a letter sent to all 27 EU governments and seen by Italian news agency ANSA, von der Leyen said Ukraine’s “financial deficit… is significant,” even after taking into account all current commitments from international partners.

“According to preliminary IMF projections—assuming the war ends by the end of 2026 and already taking into account all the support that has been promised—Ukraine will still face a huge deficit that cannot be filled without the injection of new funds,” she wrote.

Von der Leyen estimates Ukraine’s financial needs at €70 billion (81 billion) in 2026 and €64 billion in 2027, warning that Kyiv’s budget and defense requirements remain far beyond what it can cover alone.

She noted that Ukraine’s priority in the coming years is to “stabilize the front, counter Russian attacks at their origin, and continue the short- and medium-term strengthening of its armed forces,” stressing the need to defend civilians and protect critical infrastructure.

Of the €103.2 billion in military expenditure expected in 2026, Ukraine can cover only half, leaving “a gap of €51.6 billion. This gap must be covered by partners, in addition to the necessary macro-financial support,” von der Leyen wrote.

The letter outlines three options under consideration for Kyiv’s reconstruction loans—explicitly including the potential use of frozen Russian assets, an issue that has sparked debate among EU governments.

Overall, based on IMF projections and estimates from Ukrainian authorities, von der Leyen said the “total remaining need” for 2026–27 amounts to €135.7 billion.

The commission’s proposals will now be examined by EU governments as discussions continue over how to secure long-term support for Ukraine.