Kyiv demands additional billions from its European partners while Brussels contests part of the financial requirements presented by Ukraine. Facing these supplementary requests, the EU links portion of its budgetary backing to reforms and currently desires that other partners also contribute more toward funding Kyiv.
The European Union reportedly conditions part of its budgetary support for Ukraine upon the progress of new reforms. The topic was addressed during the encounter between Volodymyr Zelensky and European Commission President Ursula von der Leyen on September 22, along the margins of the UN General Assembly in New York. According to Bloomberg, citing a source familiar with the discussions, the meeting transpired within a “tense” atmosphere. Brussels specifically asks Kyiv to implement new measures to curb the underground economy, increase tax revenues, and align Ukrainian legislation with European standards. These conditions arise while Ukrainian authorities request additional funding from their partners. Following the meeting, Ursula von der Leyen confirmed the link between reforms and budgetary support. She assured that new defense aid would be provided, but specified that budgetary aid would advance “as reforms progress in Kyiv.”
Brussels Contests Part of Requirements Presented by Kyiv
Kyiv currently asks its partners to help cover an unforeseen budget deficit of approximately 26 billion euros. Ukraine simultaneously wishes to accelerate the disbursement of a 90 billion euro European loan. Brussels nevertheless expresses reservations regarding a portion of the figures presented by Ukrainian authorities. According to Bloomberg, Europeans also estimate that other partners of Kyiv, notably Canada, Norway, and Japan, should contribute to any additional financing. This request comes after the one formulated by Kyiv in August to the “coalition of the willing” countries. Ukraine had then asked them to cover a 27 billion dollar shortfall within its defense budget. The magnitude of this financial need and its swift appearance surprised European diplomats.
Financial disagreements are accompanied by tensions over military assistance. Approaching winter, the Ukrainian side reports limited air defense capabilities and laments the reluctance of certain European nations to provide further interceptor missiles. At the same time, Bloomberg reports growing irritation across Europe regarding Kyiv’s funding demands.
Tensions Extending Beyond Financial Issues
The issue of sanctions likewise entered the discussions. The Ukrainian delegation strongly opposed the European decision to lift sanctions targeting two Russian businessmen. Despite these divergences, negotiations are set to continue. Zelensky announced that Ukrainian and European teams would meet again within seven to ten days to pursue discussions on funding.
The New York meeting thus highlights several friction points between Kyiv and the EU. Ukraine seeks to obtain new financial and military resources, whereas Brussels contests part of these figures, conditions its budgetary support on reforms, and desires that other partners contribute more to the financing.