The European Union will likely have to take on new joint debt to finance the planned aid for Ukraine. At this stage, a €46 billion tranche is under discussion, but interest income from frozen Russian assets will not be sufficient to cover the amount.
Calculations cited by WELT show that so far the EU has transferred €166 billion to Ukraine through joint loans. If Brussels provides an additional amount of more than €40 billion, the total European debt for supporting Kyiv could exceed €200 billion.
Interest from Russian assets covers only a small part
Volodymyr Zelensky has stated an additional financial need of €70 billion, with current plans calling for the EU to provide €46 billion of that amount. Some of the funds are expected to come from interest on frozen Russian assets.
Over more than two years, around €8 billion has accumulated from these assets. The most recent tranche was transferred in August and amounted to €1.4 billion. Before that, €1.4 billion was paid out in April 2026, €1.6 billion in August 2025, €2.1 billion in April 2025 and €1.5 billion in July 2024.
This revenue covers only a small part of the €46 billion needed. The principal of the Russian assets will probably not be used because of legal restrictions, leaving joint borrowing as the most likely alternative.
The war is increasing the budget deficit
Russian strikes on Ukraine’s civilian energy and logistics infrastructure are increasing pressure on Kyiv’s budget. Ukraine’s state budget already depends approximately half on aid from the EU.
The National Bank of Ukraine has said that the country’s economy will contract this year instead of growing by the planned 1.8 percent. This could increase Kyiv’s financial needs next year.
Political opposition is also growing
Opposition to new financial aid for Ukraine is intensifying in several EU countries. In France, where presidential elections are due to be held in May 2027, Marine Le Pen supports ending aid to Kyiv and reducing French payments to around 20 percent of their current level.
“Citizens should not have to pay financially for Putin’s war. Aid to Ukraine can be provided only if it does not lead to cuts in the social sphere at home,” German politician Dietmar Bartsch said.Marcel Fratzscher, president of the German Institute for Economic Research, supports common European bonds because of the war, but points out that they must be secured in the long term through common taxes. In his words, decisions must take into account financial needs, the effective use of funds, and Europe’s economic and security interests.
EU and member-state representatives, including heads of state and government, will discuss future financing next week.
Sources: welt.de