Ukraine to Close Its Current Budget Deficit by Year’s End

Ukraine will eliminate its wartime budget deficit before the end of the year, President Volodymyr Zelensky announced in an interview with Reuters. Zelensky stated that negotiations conducted by Ukrainian officials in Brussels had produced a viable framework to manage the state’s short-term financing gap while maintaining steady procurement for the armed forces.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. “Over the past several months we worked on our financial deficit. We will close the current deficit by the end of the year,” Zelensky said in comments released by the presidential administration. “We still have some issues to work through, but we will close the deficit.” The president described resolving the shortfall as a major success for Ukraine, his negotiating team, and European partners, emphasizing that stabilization of the state budget was achieved through joint fiscal adjustments and credit mechanisms. Frontloading EU loans and 2027 drone contracts Zelensky explained that the government intends to advance portions of European credit allocations originally scheduled for 2027 into early January, ensuring that domestic defense contractors receive early capital allocations to maintain uninterrupted production lines. “It was not easy. We worked with our budget, with our partners, especially the European Union, and we will also try to partially use loan funds for next year,” Zelensky said. “We will bring this closer to January and use this money to order drones for January and February 2027. My team returned from Brussels and reported. Everything is working well. I hope that this will continue.” Other Topics of Interest Vilnius Airport Closes as NATO Jets Scramble Over Suspected Drone Whilst the alert was lifted after about 50 minutes, authorities are continuing to investigate the unidentified object. The drive to secure early procurement funding follows discussions between Ukrainian economic officials and European counterparts in Brussels, where Ukrainian Finance Minister Serhiy Marchenko outlined long-term financing requirements for the coming fiscal year. Marchenko previously cautioned that Ukraine could face a prospective financial shortfall of approximately €69 billion ($78 billion) in 2027, projecting requirements of roughly €40 billion ($45 billion) for defense operations and €29 billion ($33 billion) to maintain civilian state administration and public services. Reform conditionality and frozen asset discussions The planned deployment of credit lines unfolds as Brussels manages disbursements under the EU’s €90 billion ($102 billion) support loan facility covering the 2026-2027 period. Under the framework’s 2026 allocation of €45 billion ($51 billion), the European Commission has disbursed approximately €15 billion ($17 billion). European officials have emphasized that subsequent payment tranches remain linked to verified reform benchmarks, focusing on anti-corruption enforcement, judicial governance, and public administration transparency. European Commissioner for Enlargement Marta Kos noted during donor coordination sessions that completing statutory reforms remains the primary mechanism for unlocking committed funding pipelines, urging Ukrainian institutions to coordinate closely to meet technical criteria. Concurrently, European capitals have debated proposals to utilize immobilized Russian sovereign assets to support Ukraine’s defense and recovery. While Kyiv has advocated using portions of the roughly €210 billion ($239 billion) in Russian central bank reserves immobilized across Europe – principally held in Belgium through the Euroclear depository – member states including Belgium, France, and Italy have urged caution regarding potential legal liabilities and financial market stability. To supplement bilateral budgetary aid, European institutions are also integrating Ukraine into wider industrial initiatives. The European Commission approved €325 million ($368.6 million) to fund five European Defence Projects of Common Interest (EDPCI), with Ukraine participating in four collaborative frameworks. Kyiv Post is Ukraine’s first and oldest English news organization, reporting since 1995. Its international reach – 97% of readers are outside of Ukraine – make it truly Ukraine’s global voice.