Kyiv Urges EU to Unlock Russian Assets | Ukraine External Funding 27 Nov 2025

Kyiv: External Funding Critical — Ukraine Urges EU to Unlock Frozen Russian Assets

On 27 November 2025, Ukraine announced that external financial support is critical to maintain its economy and defense capabilities. Kyiv urged the European Union to release frozen Russian assets and use them to fund Ukraine’s urgent financial needs, though the EU’s decision on this proposal is still pending.

Recently, Ukraine reached a staff-level agreement with the International Monetary Fund (IMF) for a four-year program worth approximately $8.2 billion, aimed at stabilizing the economy amid the ongoing war.

However, Ukraine’s Ministry of Finance stressed that IMF funding alone is insufficient. Large-scale, timely external financing is urgently required to cover day-to-day government and defense expenditures.

Ukraine’s Foreign Minister Andriy Sybiha requested the EU to approve €140 billion in loans based on frozen Russian assets to meet immediate financial requirements, describing it as a “reparations loan” — the only practical mechanism to provide urgent funding. These assets, frozen in 2022 following EU sanctions on Russia, remain a potential but controversial source of financing.

The financial burden of war continues to escalate. In 2025, Ukraine’s daily war expenditures reached approximately $172 million, significantly higher than the previous year. The IMF estimates Ukraine’s total fiscal deficit over the next four years at $136.6 billion, with $63 billion needed specifically for 2026–2027.

Under the IMF program, Ukraine has pledged tax transparency, fiscal discipline, and economic reforms. However, domestic revenues alone are insufficient, making external support indispensable.

Meanwhile, EU members have expressed concerns. Some countries and financial institutions warn that reallocating frozen Russian assets could be legally and financially complex, potentially affecting the EU’s own fiscal stability.

Experts suggest that if the EU takes action, it could provide significant relief for Ukraine, not only stabilizing the economy but also strengthening its defense capabilities. Yet, the success of this move depends on finance, political consensus, legal frameworks, and EU-wide solidarity.

For Ukraine’s government and citizens, this is a major test: whether they can sustain international support and funding, or face growing financial and military pressures.