Ukrainian President Volodymyr Zelenskyy has called on Scandinavian and Baltic allies to help secure European Union approval for urgent financial loans to cover a $27 billion shortfall in Ukraine's defense budget.
Speaking at the Ukraine and Nordic-Baltic Eight summit, Zelenskyy warned that Ukraine urgently needs $20 billion over the next four months of this year to maintain defense operations and prevent severe weapons shortages early next year.
The Ukrainian leader told delegates that the government and the Ministry of Defense had reallocated funds originally planned for the end of the year to purchase drones and cover other immediate defensive needs. That early expenditure created a significant deficit in defense funding for the remainder of the year, according to news agency UNIAN.
Zelenskyy specified that between $8 billion and $10 billion of the total deficit is required to supply Ukrainian soldiers with weapons in January, February, and March. He emphasized that financial payments and defense manufacturing must begin immediately, warning that military forces will otherwise lack sufficient weapons at the start of the new year.
Plan to Bring Forward EU Funds
To address the funding shortfall, Zelenskyy proposed reorienting the European Union financing plan scheduled for 2027 so that a portion of those funds becomes accessible during the current year. He appealed directly to leaders from Scandinavian and Baltic nations to advocate within the European Union for a joint decision approving the loans.
The Nordic-Baltic Eight is an established regional cooperation group comprising Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Northern European group has been among Kyiv's most steadfast diplomatic and military supporters since Russia launched its full-scale invasion of Ukraine in February 2022.
In addition to reallocating EU budget timelines, Zelenskyy cited the use of frozen Russian assets in Europe as another option for meeting Ukraine's financial requirements. He stated that Ukrainian officials will pursue bilateral talks with partner nations, work to accelerate the second tranche of a $90 billion loan, and separately seek progress on unlocking frozen Russian assets.
Air Defense and Drone Production
The requested funds are designated both for expanding Ukrainian anti-ballistic missile defense capabilities and for scaling up domestic drone production. Anti-ballistic missile defense systems are vital for intercepting incoming missile strikes, while military drones provide critical intelligence and strike support along the front line.
Zelenskyy explained that strengthening these military capabilities would enable Ukraine to respond effectively to Russian escalation. By projecting force back into Russian space, he said Russian citizens would feel the impact of the war on their own territory and begin putting pressure on Russian President Vladimir Putin to end the conflict. Zelenskyy expressed confidence that the strategy of pressuring Putin will work.
The appeal comes as Ukraine awaits an expected $30 billion in financial assistance from Europe, though Zelenskyy noted that the funding remains tied to the passage of necessary legislation. He added that discussions regarding defense financing are also being conducted with France and Germany.
