Brussels is urgently exploring ways to cover a shortfall of up to $19bn in Ukraine’s budget next year, as Kyiv grapples with diminishing US support and receding prospects for a ceasefire with Russia.
The European Commission is discussing options with EU member countries, including channelling military support to Ukraine as off-budget grants, frontloading loans from an existing $50bn G7 support scheme for Kyiv, and further leveraging Russian state assets immobilised in the EU, according to multiple people familiar with the discussions.
Ukraine’s projected budget gap next year is not yet covered by external financing.
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