€70bn Shortfall Forces EU to Demand UK Close Ukraine Funding Gap
EU leaders plan to ask Britain, Canada, and Japan for increased financial support during upcoming summits.
By Alina Carter ·
Ukraine faces a €70 billion funding gap in 2027, a shortfall that European Union leaders intend to address by demanding increased contributions from non-EU allies. The primary target for these demands is the United Kingdom, with Canada and Japan also identified as key partners expected to step up their financial support.
European Commission President Ursula von der Leyen will make these requests at two upcoming events. She will first meet with Canadian Prime Minister Mark Carney at an EU-Canada summit in Montreal next week. A similar appeal is scheduled for a long-awaited EU-UK summit in Brussels on 20 November, where she will join European Council President António Costa to press British Prime Minister Andy Burnham.
Brussels argues that previous requests for extra aid from these G7 nations at recent international meetings have gone unanswered. Von der Leyen stated last week that the EU will continue to lead but urgently needs other partners to contribute more. She noted that the EU and its member states currently cover 80% of Ukraine's financial needs, a share the commission considers above the fair threshold of two-thirds.
The timing of these demands is complicated for the British government. Chancellor John Healey is preparing his first budget next week while managing rising borrowing costs and a deteriorating economic outlook. Healey said earlier this month that he is working on different ways to step up support for Ukraine, including military, diplomatic, and economic measures.
Ukraine's costs continue to rise as Russia escalates its attacks, dragging the war into its fifth winter. The EU previously agreed to a €90 billion loan intended to cover two-thirds of Kyiv's funding for 2026 and 2027. Officials are now casting a wider net, potentially looking to Switzerland, South Korea, Australia, and New Zealand for additional assistance.
The UK has committed £25 billion to Ukraine, including £16 billion in military aid, making it the fourth largest donor after the US, Germany, and France. Weighted by GDP, the UK contribution stands at 0.86% of national income. This figure is lower than France at 1.1% and Germany at 1.5%, though it aligns with them once their contributions to EU programs are accounted for.
The 20 November summit will also address three other agreements: a food and animal health deal to reduce paperwork, a linkage of emissions trading schemes, and a youth mobility scheme for those aged 18 to 30. The commission proposed deferring the issue of university tuition fees to technical talks within six months of the summit. This move aims to avoid derailing the leaders' meeting while the UK seeks to charge international rates and the EU pushes for pre-Brexit home rates.
Senior EU sources believe they retain leverage because the SPS and ETS deals will not take effect until a youth mobility agreement is finalized. An EU diplomat described the three elements as a gift to the UK, noting that the UK needs these arrangements. A second diplomat added that there is no clear majority among the 27 member states to drop the tuition fee issue for six months.
