Ukraine pushes for ‘bold action’ on Russian assets to plug $78bn shortfall in 2027

Ukraine Pushes for Bold Action on Russian Assets

Poinews.com – Ukraine pushes for bold action on frozen Russian assets as Kyiv faces a projected $78 billion financing shortfall for financial and military needs in 2027. Finance Minister Sergii Marchenko raised the issue in Brussels during meetings with international donors and financial institutions.

Marchenko said Russian assets immobilised in Europe could provide a fair and practical means of helping Ukraine manage the extraordinary costs of the war, protect public finances and hold Moscow accountable for its invasion.

Ukraine’s 2027 funding gap

Kyiv expects to need $52.6 billion in international financial support in 2027, but only $20 billion has been covered so far. That leaves a financial gap of $32.6 billion.

Ukraine also faces around $45 billion in defence expenditure without guarantees from allies. Together, these unmet needs create the estimated $78 billion shortfall.

The prolonged war has placed additional pressure on the economy. Russian attacks have disrupted business activity, damaged energy infrastructure, destroyed industrial facilities and made tax collection more difficult. Recent strikes on Ukrainian data centres have also threatened parts of the country’s digital economy and communications infrastructure.

Agricultural exports have been affected as well. Ukrainian farmers depend on Black Sea shipping routes to reach grain buyers worldwide, and restrictions on maritime trade add to the country’s losses.

“It’s the first time since 2022 we realised that we have underperformance in our tax and customs administrations,” Marchenko said.

Frozen Russian assets remain at the centre of debate

The European Union holds around €210 billion in Russian assets, most of them deposited at Brussels-based Euroclear. The funds have been immobilised since February 2022, but EU governments remain divided over whether they can be used more directly to support Ukraine.

Ukraine pushes for bold action through a centralised EU framework that could withstand legal challenges and address concerns among member states. Marchenko has argued that a shared approach would reduce the risks faced by Belgium, where much of the money is held.

At a European Policy Centre panel, he discussed a proposal to transfer the assets from Euroclear to an EU-owned custodian. Supporters believe this could make it easier to use the funds while limiting Belgium’s exposure.

“We need our friends, our European politicians, to be brave enough and to make some bold actions,” Marchenko said.

“Unfortunately, the war is longer, the war is harder, and we need to provide some resolution of frozen Russian assets or provide other means for us to survive.”

EU support loan does not close the gap

Last year, the European Commission tried to establish a zero-interest credit mechanism based on the frozen assets. The proposal failed at a December summit after Belgium, its leading opponent, helped gather enough support to block it.

EU leaders instead approved a €90 billion support loan financed through joint borrowing. The package allocates €45 billion for 2026 and €45 billion for 2027. Marchenko welcomed the commitment but said the worsening war has already pushed Ukraine’s needs beyond the available funding.

“We’re very happy with the €90 billion,” Marchenko said. “But it’s not sufficient.”

Sweden, the Netherlands, Spain and Poland, backed by the Baltic states, have warned that the existing loan will not meet Ukraine’s needs and have called for further options involving Russian assets. Belgium remains firmly opposed, while Italy and France are also sceptical about intervening in Russian sovereign reserves.

The European Commission’s immediate priority is to disburse the €90 billion loan. However, the process has been slowed by reforms in Ukraine’s parliament, with EU officials urging Kyiv to complete agreed measures linked to continued support.

FAQ: Ukraine funding and Russian assets

Why does Ukraine need additional funding for 2027? Ukraine expects a $32.6 billion gap in financial support and about $45 billion in defence spending without allied guarantees.

How much Russian money is frozen in the EU? The EU holds approximately €210 billion in immobilised Russian assets, mainly at Euroclear in Brussels.

What does Ukraine push for bold action mean? It refers to Kyiv’s call for European leaders to establish a legally secure framework that could use frozen Russian assets or find other reliable ways to meet Ukraine’s wartime financing needs.