EU Links €90 Billion Funding for Ukraine to Reforms and New Financial Strategy for 2026–2027: Key Points from the European Commission Briefing

Amid growing defense and financial challenges for Ukraine, a video call took place on September 7 between European Commissioner for Economy Valdis Dombrovskis and the Prime Minister of Ukraine Serhiy Koretskyi. The main topics included Ukraine’s financial needs for 2026–2027, the reforms required to access the EU’s €90 billion credit program, preparation of Ukraine’s financial strategy for 2027, and the issue of using frozen Russian assets.

Representatives of the European Commission outlined the key points of these negotiations at a press briefing. Brussels sent signals in two directions: to the Ukrainian government regarding the need for further reforms to access European funding, and to international partners calling for increased financial and defense support for Ukraine. The recent decision by Norway was cited as a benchmark for such efforts by the European Commission.

Conditions for the €90 Billion: Reforms, Financial Strategy, and Link to the IMF

During the meeting, the parties discussed Ukraine’s financial needs for 2026 and 2027. Central to the conversation was the mechanism for implementing the €90 billion credit program, access to which is directly linked to Ukraine fulfilling structural reforms.

European Commission spokesperson Balazs Ujvari outlined the main issues currently in Brussels’ focus.

The EU is assessing how much funding Ukraine will need to cover its financial requirements in 2026–2027. Kyiv, in turn, must fulfill defined structural commitments related to receiving this funding.

Additionally, Ukraine must prepare a financing strategy for 2026–2027 that will identify the state’s future needs and sources to cover them.

At the same time, financing issues are closely linked to Ukraine’s cooperation with the International Monetary Fund. The European Commission continues to coordinate its actions with the IMF, and the day after the conversation with the Ukrainian Prime Minister, Valdis Dombrovskis is scheduled to meet with IMF Managing Director Kristalina Georgieva. The agenda includes the results of the recent IMF mission to Ukraine and further financial support for the country.

Thus, Brussels is currently trying to assess the real scale of Ukraine’s financial needs and determine under what conditions European funding can continue to flow in the necessary volume.

Ukraine’s Financial Strategy for 2027

According to the European Commission spokesperson, Ukraine must prepare the necessary financial strategy to ensure access to funding under the relevant mechanism. Meanwhile, Brussels will continue technical consultations with the Ukrainian side and the IMF.

This point is important because the EU effectively links further financial support not only to the availability of funds but also to the quality of budget planning, reforms, and alignment of Ukraine’s financial policy with the IMF program.

On September 8, Valdis Dombrovskis is scheduled to meet with IMF Managing Director Kristalina Georgieva. This will be part of ongoing coordination regarding Ukraine’s financial situation.

Will the EU Cover Ukraine’s Budget Deficit?

During the briefing, journalists asked the European Commission whether the approximately $27 billion funding deficit for Ukraine was discussed and whether Ukraine had requested early financing.

Balazs Ujvari did not confirm any decision on this matter. According to him, the European Commission must first gain a clear understanding of Ukraine’s actual budgetary and financial situation. Only then can ways to address it be determined.

Therefore, no specific decision has been made regarding covering the deficit.

The Fate of Frozen Russian Assets

On the eve of the briefing, Ukraine’s Finance Minister Serhiy Marchenko proposed transferring custodianship of assets from Belgian jurisdiction to the EU level to avoid concentrating responsibility in one country.

The parties also touched on the issue of frozen Russian assets. The European Commission confirmed that the issue of using Russian assets remains on the agenda. Brussels recalled that last December, the European Council instructed the Council of the EU and the European Parliament to continue work on the technical and legal aspects of the relevant mechanisms.

However, there is no quick decision on this proposal yet. A European Commission representative noted that at the end of last year, there was insufficient support among member states in the Council of the EU for its immediate adoption. Now, European institutions are focused on current funding for Ukraine — the EU’s joint goal foresees providing €45 billion in 2026, of which €11.6 billion has already been disbursed.

Thus, the issue of Russian assets has not disappeared, but its further fate will depend not only on Europe’s political will but also on resolving a number of legal and financial issues.

In other words, Brussels is simultaneously working on Ukraine’s financing, reforms, Russian assets, and the diplomatic track. Regarding frozen Russian assets, the EU continues to seek a legally sustainable mechanism for their use. On the diplomatic front, the European Commission stated it supports any efforts capable of leading to a just and lasting peace. At the same time, Brussels emphasized that the EU’s position has not changed: sanctions pressure on Russia will continue, and a complete and unconditional ceasefire remains the position the EU supports together with Ukraine.

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