The EU agreed earlier this year to provide Ukraine a loan package exceeding
$100bn. President Zelensky told allies last month Ukraine faces an unexpected
$27bn defense budget shortfall and has asked Europe to advance portions of loans
planned for next year to cover the gap. European officials say they were
surprised and are cautious; several diplomats privately question whether funds
were used effectively or needs have been overstated and are working to determine
the shortfall’s source, size and whether additional disbursements are warranted
this year. Kyiv is also seeking support from the UK, Canada and Japan as US
fiscal support has been gradually reduced, increasing reliance on European
funding and potentially complicating ties as leaders balance aid with domestic
spending and electoral risk.
