German Chancellor Friedrich Merz has urged the European Union to boost financial aid for Ukraine to address a looming budget shortfall projected for 2027. Speaking at a summit of EU leaders in Brussels, Merz emphasized the importance of sustained support as Ukraine grapples with economic challenges and prepares for a harsh winter amid intensified Russian attacks.
Ukraine has indicated that current EU financial assistance may not suffice to meet its increasing needs. Although a €90 billion loan has been secured by the EU to help Ukraine until the end of 2027, Kyiv officials claim that tens of billions of euros more will be necessary. The European Commission is actively collaborating with Ukraine to ascertain the specific funding required for the coming year.
Ongoing Russian strikes have further strained Ukraine’s economy, heightening concerns about its financial stability. In response, EU discussions have included the potential use of approximately €200 billion in frozen Russian central bank assets to support Ukraine. However, this proposal is encountering obstacles, particularly from Belgium, where most of these assets are held.
Merz has dismissed suggestions of transferring some of these frozen assets to the United States as part of peace negotiations with Russia, asserting that decisions regarding the assets should remain under European jurisdiction. Meanwhile, Ukrainian President Volodymyr Zelensky is expected to meet with European leaders to request additional support, focusing on securing adequate funding to maintain Ukraine’s economy and bolster its defense against Russian aggression.