Hungary, Czechia and Slovakia refuse to make contributions to guarantees for the European Union (EU) loan for Ukraine of up to €45 billion and are simultaneously demanding increased funding for themselves from the EU budget.
The countries’ demands and diplomats’ reaction
The countries insist on a full exemption from financial obligations, as was agreed for the previous €90 billion loan. German diplomats call these demands detached from reality and point out that refusing to participate in protection against the main security threat is incompatible with wanting to receive additional subsidies from cohesion funds.
Aid package and repayment mechanism
Additional needs for Ukraine next year are estimated at €70 billion. Of that sum, international partners, including Canada and Japan, could provide about €25 billion, while European countries are expected to provide a loan of up to €45 billion.
Repayment of the new loan is planned to be covered by frozen state assets of Russia, but this mechanism remains possible rather than guaranteed. The refusal of the three countries complicates diplomatic negotiations and makes discussions over the EU’s joint budget more difficult.
Ukraine’s financing needs for 2026
For 2026, Ukraine’s total external financing need is estimated at $45 billion. Of that sum, $11.6 billion has already been disbursed, and further tranches are expected in the coming weeks, with confirmed external financing standing at around $35 billion.
Estimates of the remaining need vary: the Ministry of Finance (MinFin) forecasts a state budget deficit next year of €16 billion, whereas the National Bank of Ukraine (NBU) assesses the external financing requirement at $12.7 billion. Delays in the arrival of international funding could affect liquidity in the foreign-exchange market and show up in cash exchange rates, card exchange rates and savings.
