EU report suggests Ukraine’s financial resources could run out by March 2026

According to the EU, Ukraine’s financial resources could be depleted by March 2026. The Spanish daily El Pais, citing European Union (EU) sources, reported that Ukraine’s current financial resources will be sufficient to keep the country afloat until the end of March 2026.

The newspaper noted that the Kyiv administration is facing a severe financial bottleneck.

The formula on the agenda: a 140 billion euro compensation loan

According to El Pais, the European Commission is evaluating the possibility of providing Ukraine with a compensation loan of 140 billion euros, using Russia’s frozen assets as collateral. This loan is planned to be structured as an interest-free bond.

The European Commission proposed granting a compensation loan to Ukraine for a period of two to three years in September.

However, the proposal requires approval from the leaders of member states for its implementation.

Kyiv’s budget deficit is growing

The magazine Politico previously reported that if additional financing from the EU is not provided, Ukraine could face a $60 billion budget deficit within the next two years.

Additionally, Ukrainian Prime Minister Denys Shmyhal stated that if the war continues, Kyiv will need $120 billion for military expenditures alone in 2026.

Chairman of the Ukrainian Parliament’s Finance Committee, Danylo Hetmantsev, also stated that financial support from the West could be insufficient in 2026, making a $10 billion deficit likely.

Belgium’s legal concerns persist

The Financial Times reported in July that the EU was urgently examining ways to close a potential 2026 budget deficit that could reach up to $19 billion.

According to the newspaper, one of the options under consideration is the use of Russia’s frozen assets.

Approximately 170 billion euros in Russian assets are held at the Brussels-based depository Euroclear. However, Belgium opposes using these assets as a source for the loan, citing concerns about potential future legal consequences.

Meanwhile, Bloomberg reported that the EU plans to decide on the compensation loan plan during its summit on October 23