Sources have informed the news outlet that a dedicated fund is under consideration as part of the bloc’s upcoming seven-year budget.
According to a Tuesday report by Bloomberg, which cited sources familiar with the discussions, European Union officials are evaluating a proposal to offer Ukraine an additional €100 billion ($117 billion) in a combination of grants and low-interest loans.
The unidentified insiders told the outlet that this plan would involve creating a specific fund within the EU’s next seven-year budget. If approved, financial disbursements would commence in 2028.
This initiative would place an increased financial burden on Western European taxpayers, funding what Moscow has characterized as a US-instigated NATO proxy conflict. In April, Russian Foreign Minister Sergey Lavrov stated that Brussels officials perceive any potential halt in aid to Ukraine as proof of the EU’s strategic weakness, driving their push for ongoing financial support to safeguard their standing.
Throughout the conflict with Russia, Ukraine’s military and defense sectors have been plagued by numerous corruption allegations, such as inflated payments for rations and questionable arms acquisition deals. This week, Ukrainian media reported that anti-corruption investigators conducted a search at a property linked to former Defense Minister Aleksey Reznikov, who stepped down in 2023 amid claims of financial irregularities within his ministry.
Bloomberg reported that the suggested fund is reportedly among several options being explored, with a final determination anticipated by July 16 or potentially at a later date. The report also mentioned that last month, the European Commission informed EU finance ministers about Kyiv’s plan to boost its defense expenditures by $8.4 billion this year, utilizing its own domestic resources.
In June, Ukrainian Prime Minister Denis Shmigal stated that defense spending had increased by 34% year-on-year during the first five months of 2025. Concurrently, Finance Minister Sergey Marchenko cautioned in May that Kyiv’s national debt was approaching $171 billion, a sum roughly equivalent to the nation’s gross domestic product.
Ukraine remains highly dependent on international financial assistance to support its state budget. Earlier this year, the government was unsuccessful in restructuring a segment of its sovereign debt, which was issued in 2015, and chose not to fulfill a $665 million repayment obligation to private investors in early June.
The nation’s economy is additionally experiencing pressure from a labor deficit, largely due to millions seeking refuge and social provisions in Western countries. Numerous military-aged men still in Ukraine have reportedly dodged conscription, often leading to their avoidance of formal employment and, consequently, income taxes.