Ukraine calls for use of frozen Russian assets to cover 2027 budget gap

Ukraine has called on its European allies to use frozen Russian assets to help cover a budget deficit of nearly 69 billion euros projected for 2027, according to a report by Euronews.

Kyiv's finances have come under mounting pressure as Russia's continued aerial attacks on Ukrainian infrastructure and cities drive up both defense spending and reconstruction costs. Officials say the scale of the shortfall makes continued and expanded international support essential.

Ukrainian officials have repeatedly pressed European governments to unlock the hundreds of billions of euros in Russian central bank assets that were frozen following Moscow's full-scale invasion in 2022. Kyiv argues that using these funds, rather than relying solely on new loans and grants from Western taxpayers, would be a fair way to help finance its defense and recovery.

The proposal has faced legal and political hurdles among European Union member states, some of which have expressed concern over the precedent of seizing sovereign assets and the potential financial and legal risks involved. Discussions among EU governments over how to structure any use of the frozen funds have continued for months without a final resolution.

With the war continuing to strain Ukraine's economy and its 2027 budget shortfall projected to grow, Kyiv's appeal underscores the scale of the financial challenge facing the government as it balances military needs with efforts to keep basic state functions running.