EU Surprised by Ukraine's $27 Billion Budget Deficit

Ukraine has requested additional funding of around $27 billion from its allies for defense needs. European officials are demanding explanations regarding the formation of the deficit and the targeted use of funds. Kyiv's request came as a surprise, and some officials express doubts about the effectiveness of spending. The EU is trying to understand the reasons behind the sharp increase in the budget deficit and the necessity of the entire requested amount. President Volodymyr Zelensky pointed to previous expenditures by the Ministry of Defense, while former Minister Mykhailo Fedorov denies this. Roksolana Pidlasa, chair of the Ukrainian Parliament's Budget Committee, noted that at the beginning of the year, a deficit of $7.5 billion was expected, but military spending in the first eight months increased by more than 17%. Ukraine has lost significant revenue due to attacks on its industry. The European Union had previously agreed to a loan of €90 billion, but Kyiv wants to receive part of the funds earlier. Using funds planned for 2027 could reduce Ukraine's financial reserve next year. The unexpected request may complicate Kyiv's relations with its allies amid declining support from the United States. Ukraine is also insisting on using frozen Russian assets, but legal and financial disputes are arising.

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