Ukraine Seeks Early EU Loan to Cover $27 Billion Military Budget Gap

Ukraine's new defence minister, Yevhenii Khmara, announced on August 30 that Kyiv will seek to bring forward part of a European Union loan planned for 2027 to address a $27 billion shortfall in this year's military budget. Khmara, a former special forces commander confirmed in his post by parliament on August 19, stated that Ukraine will present allies with a detailed war plan to support the request for early funds. The $27 billion gap was outlined by President Volodymyr Zelensky during a meeting of the Coalition of the Willing in Kyiv on August 24, which coincided with Ukraine's 35th Independence Day. Zelensky explained that the shortfall arose because the Defence Ministry used funds allocated for the second half of 2026 to cover urgent expenses in the first six months, including drone production. These sums now need to be replenished, and spending for the remainder of the year must also be financed. Of the total, approximately $20 billion is needed for military pay and other running costs, while between $8 billion and $10 billion is required in advance for weapons and supplies due in January 2027.