European partners are surprised by Ukraine’s $27 billion defense budget deficit. — NYT

Ukraine’s European partners were surprised to learn of a $27 billion deficit in the country’s defense funding. They are now trying to determine how this shortfall arose and whether the stated amount is justified.

The New York Times reports this, citing unnamed European diplomats.

According to them, President Volodymyr Zelenskyy informed European officials of the need for an additional $27 billion during their visit to Kyiv on Independence Day.

The publication’s sources noted that the partners had not expected such a significant deficit. Some European officials even questioned the effectiveness of the funds already provided or suggested that Ukraine may have overstated its financial needs.

European officials are now trying to determine the source of the stated amount, the true extent of the deficit, and whether Ukraine needs to increase funding this year.

In addition to EU countries, Kyiv also appealed to the UK, Canada, and Japan for additional assistance.

The NYT notes that the request for additional funds could complicate Kyiv’s relations with its allies. European leaders must simultaneously balance supporting Ukraine with funding their own domestic needs to avoid dissatisfaction with voters.

One possible way to cover the deficit is to accelerate payments on the already agreed-upon €90 billion European loan, the publication’s sources suggest.

Prime Minister Sergei Koretsky and Defense Minister Yevhen Khmara previously discussed a $27 billion deficit. Koretsky attributed the shortfall to the rising cost of war, which is becoming increasingly technological and demanding.

He also cited the fact that in the first half of the year, the Ministry of Defense financed part of the resource expenditures planned for the second half of the year as another reason. Furthermore, he said, some commitments to international partners remained unfulfilled.

Amid the deficit, the government also announced the introduction of a “strict austerity regime” for funds not allocated to defense needs.