Volodymyr Zelensky, the President of Ukraine, announced in a conversation with reporters that his country is in urgent need of filling a $27 billion shortfall in its defense budget over the next two months. He warned that if this amount is not secured, Ukraine may not be able to purchase the necessary weapons early next year.
Details of the Budget Shortfall
Zelensky said: "Most of this money is for purchasing drones, missiles, and military equipment for our forces. About a third of this amount, perhaps even a little more, is essential for purchasing drones in January, February, and March. If we do not place and pay for these orders in October and November, we will face serious challenges in January and February."
The President of Ukraine added that securing this shortfall has been the main subject of his negotiations with European partners. He said: "I have asked the European Commission to disburse the second tranche of the €90 billion loan as soon as possible. Because I reiterate that we need to have the drones and missiles necessary for January and February."
Impact of Loan Delays
Ukraine first reported this budget shortfall in August. This shortfall arose after Ukraine was forced to pay for government defense expenditures that were supposed to be spent in the second half of the year ahead of schedule. This issue was caused by delays in the €90 billion loan from the European Union to Kyiv due to Hungary. The purchases made include "fiber optic drones, medium-range drones, and interceptor systems."
Despite the €30 billion financial aid that Europe has allocated to Ukraine this year, the budget shortfall remains. Zelensky stated that during his recent diplomatic negotiations with the European Union, he received a positive and constructive response.
Need for Increased Investment
Zelensky continued: "Everyone understands that securing this shortfall is very important. Everyone knows that Ukraine cannot be left to fend for itself and that more investment in Ukrainian-produced drones and missiles is needed, as a significant portion of this shortfall requires funding."
European Union member states agreed on Friday on the conditions for releasing €6.6 billion from the European Peace Facility resources for Ukraine. Kaja Kallas, the EU's senior diplomat, announced this agreement in a statement.
