NYT: Zelenskyy’s $27 billion request surprises European leaders

Ukraine's unexpected request for an additional $27 billion to cover a defence budget shortfall has caught European allies off guard, raising questions about the origins and scale of the deficit as Kyiv faces some of the most intense Russian attacks of the war, The New York Times reports.

The report said when European officials travelled to Kyiv last month for Ukraine's Independence Day, they were informed that the country was facing a much larger defence funding gap than previously anticipated.

The European Union, one of Ukraine's main financial backers, had finalised a loan worth more than $100 billion earlier this year. However, President Volodymyr Zelensky told allied leaders that Ukraine needed another $27 billion to cover its requirements through the end of the year.

The request has caused concern among European officials, particularly as Ukraine struggles to obtain enough air-defence systems to protect its cities from continuing Russian missile and drone attacks.

European governments recognise that Ukraine is fighting for its survival, but four European diplomats said they had not anticipated such a substantial funding deficit. Some officials have privately questioned whether the available funds are being used efficiently or whether Ukraine's financial requirements have been overstated, according to two European officials.

European authorities are now working to establish how the gap emerged, its precise size and whether additional funding can be provided before the end of the year. Ukraine has also approached Britain, Canada and Japan for assistance.

The unexpected appeal risks putting further strain on Kyiv's relations with its allies at a time when continued Western support is crucial. The United States has reduced its financial backing for Ukraine, leaving European governments with a greater share of the burden. At the same time, national leaders must balance aid to Ukraine against domestic spending demands and the risk of voter dissatisfaction.

Ukraine's financial pressures also highlight the rising cost of supporting the country. Russian attacks have intensified, including strikes against Ukrainian ports that have reduced a major source of state revenue. Kyiv is also facing a severe shortage of US-made interceptor missiles capable of countering ballistic weapons while attempting to develop domestic alternatives.

“The war has objectively become more expensive,” said Olena Prokopenko, a Ukrainian foreign policy specialist and senior fellow at the German Marshall Fund.

She said that if Ukraine could demonstrate that the additional funding was genuinely necessary, “I believe that they will find a way — for Ukraine’s sake, but also for their own sake.”

The origins of the budget shortfall remain disputed. Speaking in Kyiv last month, Zelensky said some of the spending had taken place under former Defence Minister Mykhailo Fedorov, who had pushed for major reforms in the defence industry before being dismissed in a move that triggered street protests.

The defence ministry “used funds that had been budgeted for the end of this year, and of course, the total gap is $27 billion,” Zelensky said at a meeting with European and British leaders on August 24.

Fedorov has rejected the claim that such a large deficit existed during his time in office, arguing that the shortfall must instead be connected to projects initiated under the ministry's new leadership.

Ukraine has yet to publish a comprehensive breakdown of its immediate funding requirements. Zelensky said last month that the figure included weapons, military salaries and payments to the families of soldiers killed in combat.

By Bakhtiyar Abbasov