Ukraine is urging the European Union to consider using immobilised Russian central-bank assets to help cover a projected $78 billion funding gap in 2027. The appeal was made by Finance Minister Sergii Marchenko during meetings with international donors and financial institutions in Brussels, as Russia’s continuing attacks increase Ukraine’s military and economic costs.
The proposal remains politically and legally contentious. EU officials are prioritising the delivery of an already agreed €90 billion support loan, while several member states remain cautious about using sovereign Russian funds and the European Commission says Kyiv must advance outstanding reforms.
Ukraine says 2027 shortfall could reach $78 billion
Marchenko told donors that Ukraine faces two major funding pressures next year. The country estimates it will need $52.6 billion in financial assistance, of which only $20 billion has so far been covered. That leaves a $32.6 billion gap.
A further $45 billion is required for defence spending for which allied guarantees have not yet been secured. Combined, the figures create the projected $78 billion shortfall.
The figures have not yet been validated by the European Commission. Officials in Brussels have spent recent weeks discussing Ukraine’s needs with Kyiv and the International Monetary Fund, following earlier estimates that focused on a defence funding gap in 2026.
War damage is worsening pressure on public finances
Ukraine’s financial position has been weakened by repeated Russian attacks on infrastructure and economic activity. Damage to electricity networks, factories and digital infrastructure has disrupted production and reduced the government’s ability to collect taxes and customs revenue.
Marchenko also pointed to restrictions affecting Black Sea trade, which have made it more difficult for Ukrainian farmers to export grain to international buyers. The disruption adds pressure to a wartime economy already dependent on external assistance.
What are the frozen Russian assets?
Following Russia’s full-scale invasion of Ukraine in February 2022, the assets of the Russian central bank held in Western jurisdictions were immobilised under sanctions. The EU holds approximately €210 billion of those assets, most of it through Euroclear, the Brussels-based securities depository.
Immobilisation prevents the assets from being moved or used by Russia, but it does not automatically transfer ownership to Ukraine. Any plan to use the underlying principal would raise complex questions involving international law, sovereign immunity, financial stability and the responsibilities of the institutions holding the funds.
Ukraine is calling for a centralised framework that would be legally robust and reduce risks for Belgium, where Euroclear is based. One idea discussed previously involved moving the assets into an EU-owned custodian.
Why the proposal remains divisive inside the EU
The use of Russian sovereign assets has been debated repeatedly by EU governments. A previous European Commission plan sought to channel the assets into a zero-interest credit line for Ukraine, but the initiative failed to secure sufficient political backing at a summit in December.
EU leaders subsequently agreed on a €90 billion support loan based on joint borrowing, divided equally between 2026 and 2027. Ukraine has welcomed the package but says it will not cover the additional costs created by the continuing war.
Some governments, including Sweden, the Netherlands, Spain and Poland, supported by Baltic states, have called for new options to mobilise the frozen assets. Belgium has opposed the proposal, while Italy and France remain sceptical, according to diplomats cited in the source report.
Belgium’s concerns include potential legal claims and financial exposure linked to Euroclear. Any common EU approach would therefore need to address both the legal basis for action and the distribution of risk between member states.
Commission prioritises existing support and reforms
The European Commission is seeking to avoid another political defeat over the assets and has said its primary focus is the implementation of the €90 billion loan. Access to the agreed support has been affected by delays connected to reforms in Ukraine’s parliament and public institutions.
Marta Kos, the European Commissioner for Enlargement, told the donors’ conference that Ukraine needed to deliver the reforms already agreed so that financial support could continue. Her message reflects a wider EU position: financial assistance is linked not only to wartime needs but also to governance, institutional performance and reform commitments.
That creates a tension between Kyiv’s urgent request for additional resources and Brussels’ insistence that existing programmes must be unlocked and properly implemented first.
What happens next?
No decision has been taken to transfer the Russian assets to Ukraine. The European Commission has not confirmed the full size of the projected shortfall, and member states remain divided over how far they should go.
The next stages are likely to include:
- Further work by the Commission, Ukraine and the IMF to verify the 2027 financing needs.
- Efforts to accelerate reforms required for the €90 billion support loan.
- Legal and financial analysis of any plan involving the Russian central-bank principal.
- Political discussions among EU governments over Belgium’s concerns and the positions of France and Italy.
- Continued efforts to secure donor commitments for Ukraine’s financial and defence requirements.
For Ireland, the issue matters because decisions on EU borrowing, sanctions and support for Ukraine are taken within the wider framework of EU cooperation. However, the source material does not identify a specific Irish government position on using the frozen assets.
Conclusion
Ukraine’s appeal has placed the frozen Russian assets back at the centre of EU discussions about wartime financing. The projected $78 billion 2027 gap illustrates the scale of the challenge, but the figures remain subject to verification and no agreement exists to use the principal of the immobilised funds. For now, the EU’s immediate priority is to deliver the €90 billion loan while assessing whether a legally secure and politically acceptable approach to the assets can be found.
