European Commission President Ursula von der Leyen told Ukrainian President Volodymyr Zelensky on Tuesday that Ukraine can access an additional 37 billion euros in European Union credit by the end of 2026.
The two leaders met on the sidelines of the United Nations General Assembly in New York. Writing on social network X after the meeting, Von der Leyen confirmed that more defense support was on its way to Kyiv, alongside additional budgetary assistance as legislative reforms in Ukraine move forward.
The 37 billion euros represents the remaining funds available for this calendar year under a broader 90 billion euro EU credit facility. The European Union established the 90 billion euro package to cover Ukraine's financing needs for 2026 and 2027.
The European Commission serves as the executive branch of the European Union, responsible for proposing legislation, managing bloc budgets, and overseeing financial aid programs to partner nations.
Financial Resilience and Budget Deficit
Zelensky confirmed on social media that his discussion with Von der Leyen focused on maintaining Ukraine's financial resilience throughout 2026 and 2027. He expressed gratitude to the EU for approving the 90 billion euro package.
The Ukrainian president stated that Kyiv is fulfilling its commitments under the financing agreement to the extent permitted by its budget deficit. The release of EU funds remains tied to specific fiscal adjustments required by European authorities.
Ukraine faces severe fiscal pressure after spending more on defense during the first half of the year than originally planned. Ukrainian officials recently revealed that the country must cover an additional 27 billion dollars in defense costs before the end of the year.
The Verkhovna Rada, Ukraine's unicameral parliament in Kyiv, has been working to pass mandatory fiscal and administrative reforms required under the credit agreement to keep funds flowing from European institutions.
Impact of Russian Infrastructure Strikes
Financial strain on the Ukrainian government has intensified in recent weeks following a targeted Russian campaign against strategic domestic economic sectors. Russian strikes have heavily damaged Ukrainian agriculture and metallurgy, two traditional pillars of the national economy.
Ukraine's economic stability relies heavily on grain production and steel manufacturing. Repeated Russian bombardment of processing facilities, ports, and industrial plants has severely limited export revenues and reduced tax collection.
The European Union now provides almost all of the external funding that sustains Ukraine's war effort and maintains the operational viability of the Ukrainian state. Russia launched its full-scale invasion of Ukraine in February 2022, prompting Kyiv to rely continuously on EU backing.
EU Renews Russian Sanctions Regime
In a separate decision on Tuesday, European Union member states agreed to renew the bloc's sanctions package against Russia for violating Ukraine's territorial integrity, just hours before it was set to expire, announced the Irish presidency of the Council of the EU.
The Council of the European Union represents the national governments of the 27 member states, with its presidency rotating among member nations every six months.
Renewal of the sanctions package had been blocked for several days due to a dispute over individual targets. France and Luxembourg had requested the removal of two Russian oligarchs from the list, a proposal that was opposed and blocked by Latvia.
The territorial integrity sanctions regime targets roughly 2,600 individuals and entities. The measures freeze assets held within the EU and prohibit anyone from making funds available to those listed. Following Tuesday's agreement, the sanctions package will remain in force until 22 September 2029.
These territorial measures operate separately from the EU's broad economic sanctions against Russia. Those economic penalties, which target sectors including energy, trade, and financial services, were recently extended in a separate decision by the European Union.
