Ukraine is pushing its European allies to take a political decision to release a proposed $163-billion loan based on frozen Russian state assets next month, as it frets over a gaping hole in the 2026 budget and fallout from an unfolding corruption scandal.
European leaders failed to agree on the "Reparations Loan" for Kyiv last month and will discuss it again at a summit on 18 December, with Ukraine expected to need its first big injections of financial support from the second quarter of 2026.
A senior official in President Volodymyr Zelenskyy's administration told Reuters the summit looked to be the last chance for Europe this year to agree to provide the loan for Ukraine, a move Russia said would elicit a "painful response".
"We don't expect all technical details to be finalised by that time, but the architecture for issuing the loan must be agreed," Iryna Mudra, a top legal adviser in Zelenskyy's administration, said in an interview.
She said Ukraine expected its European allies to define the structure and governance through which the funds would be provided. It was also vital for Ukraine to be involved in decisions on how to allocate and prioritise the funds, she said.
"Without Ukraine's direct involvement, assistance risks becoming ineffective only because we know the real needs on the ground, but the decision should be taken together with our partners, definitely," she said.
Wartime budget
Economists warn Ukraine could exhaust its funds in early 2026 without fresh European support, particularly as the prospect of direct U.S. aid under President Donald Trump appears uncertain.
EU leaders agreed last month to meet Ukraine's "pressing financial needs" for the next two years but stopped short of endorsing a plan to use frozen Russian assets to fund a giant loan to Kyiv because of concerns raised by Belgium.
On Monday, European Commission President Ursula von der Leyen told European governments in a letter seen by Reuters that there were three options to finance Ukraine and that a combination of them was also possible.
Apart from the loan, the options include European Union countries providing grants and the bloc borrowing on markets.
The document estimated that Ukraine's remaining needs for 2026-2027 amounted to €135.7 billion ($157.37 billion).
The Commission's proposal to use frozen Russian assets would produce a loan of €140 billion, covering those needs.
Corruption Scandal
Overshadowing Kyiv's relations with foreign partners is a corruption scandal that has already ensnared two cabinet ministers and spurred calls from some lawmakers for the entire cabinet to be dismissed.
Though they are not directly implicated, the allegations of a $100-million kickback scheme in the energy sector alleged by Ukraine's anti-corruption agencies have shaken faith in the government and pose a political challenge to Zelenskyy.
Neither of the ministers has been named as a suspect, and both have denied wrongdoing in the scandal.
Mudra said Zelenskyy's response to the scandal had been immediate and strong, that the case underscored the independence of Ukraine's anti-corruption agencies championed by the EU and that it would ultimately be resolved by the judiciary.
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Here's your AnewZ Daily Brief for 28 September 2026. These are the top stories making headlines in technology.
Saudi Foreign Minister Prince Faisal bin Farhan has arrived in Washington for talks with U.S. Secretary of State Marco Rubio on bilateral ties and key regional and international developments, Saudi state news agency SPA reported.
U.S. President Donald Trump has denied reports that he offered Iran sanctions relief and access to frozen funds in exchange for nuclear concessions.
The European Union's decision to simultaneously advance accession talks with Ukraine, Moldova, Montenegro and Albania marks its most ambitious enlargement effort in more than two decades.
China has announced plans to complete the world's first AI-driven geological map of Mars by the end of 2028, a project that aims to reconstruct the red planet's ancient water history and introduce a Chinese framework for Martian geological time that Beijing hopes will become a new global standard.
Norway’s parliament on Wednesday began public hearings into ties between late U.S. sex offender Jeffrey Epstein and Norwegian diplomats and politicians, as authorities face questions over the impact of those relationships on the country’s foreign service.
New York prosecutors have reopened a criminal investigation into allegations that seven Cornell University fraternity members sexually assaulted a student in 2024. The case is set to be presented to a grand jury following renewed scrutiny.
British Prime Minister Andy Burnham has declared that Brexit has done more harm than good, while reaffirming support for Ukraine and NATO as he used his first Labour conference speech as leader to set out a new direction for Britain.
The arrival in South Korea of two North Korean soldiers captured while fighting for Russia has created a rare legal, diplomatic and humanitarian case, raising questions over their status, security and future.
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