Ukraine’s uncovered state budget deficit for 2026–2027 amounts to $60 billion.
This was stated by Deputy Minister of Finance Oleksandr Kava during an extraordinary session of the Kyiv Security Forum on the situation in the energy sector and economy.
“Regarding 2026, for the Ministry of Finance in planning the state budget expenditures for next year, this year is more challenging than 2025. When we prepared the budget project for the current year, we had a clear understanding of how the budget deficit would be covered,” Kava said.
He noted that during the preparation of the 2025 budget, funding from the U.S. was more predictable – the Biden administration was completing its term, so Ukraine was able to coordinate the necessary support before the change of government.
“Now the situation reminds me somewhat of 2024, which many of our partners considered the year the war would end, and therefore were not in a hurry to make decisions regarding Ukraine’s funding. As you may recall, we entered the year with enough money until the end of February, then European funding opened up until mid-summer. The current situation is somewhat similar, as the uncovered deficit for the next two years amounts to $60 billion,” the deputy minister explained.
He added that the Ministry of Finance is actively working with partners on options to support the budget and, although the process is challenging, remains optimistic about resolving the deficit issue.
Kava also spoke about efforts to create a new financing mechanism for Ukraine using frozen assets of the Russian Federation. This primarily involves the European Union, with ongoing discussions in Belgium, where most of Russia’s frozen financial assets are held.
“Unfortunately, the United States’ position on financial aid to Ukraine has changed. However, European partners and other G7 countries remain very optimistic and are trying to assist us as much as possible in addressing our challenges,” he emphasized.
