Ukraine’s budget deficit in 2027 may be larger than expected, requiring additional assistance from the European Union. Bloomberg reports this, citing sources.
According to the agency, Kiev is having difficulty in talks with the International Monetary Fund (IMF) due to “politically sensitive demands” from the country’s second-largest creditor after the EU.
In July, the IMF forecast Ukraine’s deficit in 2027 to be 17.8% of GDP, 3.3 percentage points lower than in 2025. However, this forecast is based on a scenario in which the Ukrainian conflict ends in 2026, the agency explained. As the fighting continues, the deficit forecast is likely to be revised up, one of the agency's sources said.
According to him, the size of the budget deficit in 2027 remains unclear, as well as the sources of its financing. The impact of this situation on the IMF loan program also remains unclear. Last week, Kiev began a new round of negotiations with the IMF to unlock a new tranche of aid. If these negotiations are unsuccessful, Kiev could lose $ 5 billion in international aid as early as 2026.
On August 27, the Financial Times also reported, citing sources, that several European countries fear that Kiev may not receive sufficient financial assistance from the EU and will therefore again try to demand the seizure of frozen Russian assets. Sweden, the Netherlands, Spain and Poland were named among the countries supporting the initiative.