The European Union is considering establishing a fund for Ukraine worth 100 billion euros ($117 billion) in the next seven-year EU budget, Bloomberg reported on July 8, citing sources familiar with the proposal.

Sources told Bloomberg that the proposed funding, which is set to be presented later in July, would begin to be disbursed in 2028 as a means to provide additional assistance to the war-torn country amid waning U.S. support.

The proposal for an approximately 100 billion euro fund was previously touted by European Union Commissioner for Defense and Space, Andrius Kubilius, who called for the additional funding to be included in the seven-year EU budget in December 2024.

The fund, alongside other options, will be discussed before the Multiannual Financial Framework are released on July 16, according to Bloomberg.

Early in his second term as president, U.S. President Donald Trump repeatedly lambasted the EU for not providing an equal amount of support for Ukraine, urging the bloc to match spending on the war.

Since then, U.S. military and financial support have become unreliable, with contradictory statements coming out of the White House on additional military shipments in recent days.

On July 2 announced a halt in weapons shipments to Kyiv due to dwindling U.S. stockpiles, Trump later claimed he wasn't responsible for the decision and wanted to send more weapons to Ukraine.

Axios reported on July 8 that the White House is pursuing a plan to have Germany sell another Patriot battery to Ukraine, with the U.S. and European allies splitting the cost of the purchase. Sources told the outlet that Trump also pledged to send 10 Patriot interceptor missiles to Kyiv.

As support from the U.S. remains unpredictable, European countries are looking into additional ways to how it can continue to support Ukraine.

The proposed new funding agreement would follow previous support provided through the European Commission through grants and loans.

Since the start of Russia's full-scale invasion in February 2022, the EU has provided 160 billion euros ($187 billion) in aid to Ukraine. Along with Group of Seven (G7) countries, the EU has also provided loans as part of its $50 billion loan back by frozen Russian assets.

As Ukraine's budget deficit continues to grow amid the full-scale war, the European Commission is also discussing with EU member states separate options to help Kyiv sustain its economy, the Financial Times reported on July 8. The deficit could range from $8 billion to $19 billion in 2026.

Ukraine’s 2026 budget could face $19B shortfall as Europe weighs how to fill the gap, FT reports

The financial hole in Ukraine’s budget is linked to reduced U.S. support and the lack of prospects for a swift ceasefire with Russia that Europe had hoped for, the Financial Times reported.

The Kyiv IndependentYana Prots

The European Commission is discussing with EU member states various options to cover Ukraine's budget deficit for next year, which could range from $8 billion to $19 billion, the Financial Times reported on July 8.

International partners have provided Ukraine with over $39 billion for its wartime economy so far this year, Prime Minister Denys Shmyhal announced.

The financial hole in Ukraine's budget is linked to reduced U.S. support and the lack of prospects for a swift ceasefire with Russia that Europe had hoped for, the Financial Times reported.

A senior EU official told the publication that many of Ukraine's partners had previously counted on a peace deal in 2025, but are now forced to revise their funding plans.

This includes the European Commission, which has already adjusted spending from Ukraine-related funding streams.

Without support from Western partners, Kyiv would face a budget deficit of $19 billion in 2026, according to the Financial Times. However, even if additional international financing for the wartime economy can be secured, a gap of at least $8 billion would remain.

To support Ukraine's budget, Europe is considering providing military aid in the form of off-budget grants that would be recorded separately as external transfers but would count toward NATO member countries' national defense spending targets.

One EU diplomat told the Financial Times that military support for Ukraine is viewed as a contribution to the defense of all of Europe.

In a document for G7 countries reviewed by Financial Times, Kyiv proposed that European allies co-finance Ukrainian forces, framing this as a service to strengthen continental security.

Other support options under discussion include potentially accelerating payments from the existing $50 billion G7 loan program and reinvesting frozen Russian assets in higher-yield financial instruments that the EU allocated to help service the debt.

According to the Financial Times, two sources confirmed that the commission planned to discuss these options with EU finance ministers on July 8.

The funding issue will also be raised at the Ukraine Recovery Conference in Rome on July 10-11, dedicated to Ukraine's reconstruction needs. European Commission President Ursula von der Leyen will attend the event.

The Dutch Defense Ministry will finance the production of 20 Ermine ground vehicles for Ukraine, German defense manufacturer Rheinmetall announced on June 25.

The contract, signed during the NATO summit in The Hague, marks the first order for the new-generation tactical platform. Ukraine will become the first country in the world to receive the Ermine.

The Ermine, developed by Rheinmetall Defence Nederland, is designed primarily for front-line evacuation missions.

The light buggies provide fast, maneuverable transport for wounded personnel in combat zones. Rheinmetall said the deliveries are expected to begin in 2026.

According to Rheinmetall, the Ermine is a "lightweight tactical system that combines the robustness of a diesel unit with many advantages of an electric drive."

It's a modular system that comes in four configurations — 4x4 quad, 4x4/6x6 buggy, or Unmanned Ground Vehicle (UGV).

The Ermine combines a diesel engine with an electric motor that allows for what Rheinmetall describes as "Silent Move & Silent Watch," and has a range of up 1,200 kilometers, and can carry up to a tonne.

"The electrical powertrain makes the Ermine almost silent. It is capable of driving up to 50 km silently through heavy terrain and up to 100 km on the road," the company said.

"The system offers its users significant tactical advantages in avoiding enemy reconnaissance."

The electrical engine can even provide charging points for soldiers out in the field.

On June 24, Dutch Prime Minister Dick Schoof presented a new military aid package for Ukraine, including 100 drone radar systems, front-line vehicles, and 80 million euros (over $90 million) for the drone initiative.

The NATO summit concluded on June 25 with a joint pledge by member states to raise defense spending to 5% of GDP by 2035. The updated target reflects shifting priorities within the Alliance as the war in Ukraine drags into its fourth year.

Unlike in previous years, the 2025 summit communique did not include an explicit condemnation of Russia's invasion. Still, the final statement reaffirmed support for Ukraine and said assistance to its defense industry will count toward the new spending benchmark.

President Volodymyr Zelensky met with U.S. President Donald Trump during the summit, where the two leaders discussed battlefield developments, Kyiv's need for additional air defense systems, and the potential for co-production of drones.

"They (Ukraine) do want to have the anti-missiles, as they call them, the Patriots, and we're going to see if we can make some available," Trump said. "They are very hard to get. We need them too. We are supplying them for Israel, and they are very effective."

Trump's remarks signal a potential boost to Ukraine's air defense capabilities, which have come under increasing strain amid intensifying Russian attacks.

Meloni tells Trump US must show ‘same determination’ on Ukraine as with Iran

“I said the same determination is needed to achieve two other important ceasefires,” Meloni said.

The Kyiv IndependentTim Zadorozhnyy

The European Union is developing a plan to generate more revenue for Ukraine by shifting nearly 200 billion euros ($215 billion) in frozen Russian assets into higher-yield, riskier investments, Politico reported on June 19, citing unnamed sources.

The assets, largely held by Belgium-based clearinghouse Euroclear, have been immobilized since 2022 under EU sanctions imposed following Russia's full-scale invasion of Ukraine.

Under the current framework, the funds are invested conservatively with the Belgian central bank, generating low but steady returns. In 2024, this approach yielded around 4 billion euros ($4.3 billion) in windfall profits, which the EU allocated to help service a G7-backed 45-billion-euro loan for Ukraine (around $50 billion).

Now, with that loan largely disbursed and concerns mounting over future financing, especially amid signals from U.S. President Donald Trump that American support could be scaled back, EU officials are under pressure to find new funding streams.

According to Politico, the proposed plan would redirect the frozen Russian assets into a special investment fund under EU control, allowing for higher returns without confiscating the assets — a move designed to sidestep legal and political opposition.

As part of the current G7-led funding framework, Ukraine has already received 7 billion euros ($8 billion) from the EU under the Extraordinary Revenue Acceleration (ERA) initiative, which uses profits from frozen Russian sovereign assets to fund loans.

Prime Minister Denys Shmyhal confirmed on June 13 that a fifth tranche of 1 billion euros ($1.1 billion) had been disbursed to support Ukraine's state budget. The ERA mechanism, part of the broader $50 billion G7 program, aims to ensure stable financing for Kyiv while making Russia shoulder the cost of its aggression.

According to Politico, finance ministers from all 27 EU countries are expected to debate the idea during an informal dinner in Luxembourg on June 19.

Poland, which currently holds the Council of the EU's rotating presidency, emphasized the urgency of the discussions, writing in an invitation letter seen by Politico that "further steps regarding the sanctions regime" and the potential use of frozen Russian assets "must be addressed."

The European Commission has also been holding informal consultations with a group of member states, including France, Germany, Italy, and Estonia, to explore legal options for keeping the Russian assets frozen in case Hungary exercises its veto power during the semiannual sanctions renewal process. So far, no workaround has been finalized.

Hungarian Prime Minister Viktor Orban has repeatedly threatened to block sanctions extensions as a gesture of goodwill toward Moscow, raising concerns the assets could be unfrozen and returned to Russia by default.

By now, much of the EU's 50-billion-euro ($57 billion) Ukraine Facility, agreed in 2023 and intended to last through 2027, has already been spent. The bloc's broader 1.2-trillion-euro ($1.37 billion) budget is stretched thin, and any additional top-ups would also require unanimous support.

Russia just accidentally admitted to its staggering troop losses in Ukraine

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The Kyiv IndependentChris York

Editor's note: This story has been updated to include Germany's announcement to supply Ukraine with $2.2 billion in additional military aid.

Germany will deliver new IRIS-T air defense systems to Ukraine under a three-year supply plan, President Volodymyr Zelensky said during a joint press conference with German Defense Minister Boris Pistorius, who added Berlin has no plans to provide Taurus long-range missiles.

The announcement comes amid escalating Russian aerial assaults, including a June 10 missile and drone strike on Kyiv, one of the largest since the start of the full-scale invasion.

"We are grateful for the supply of IRIS-T air defense systems," Zelensky said on June 12. "We understand that deliveries are currently being planned... for the next three years. This is very important assistance."

The IRIS-T is a German-made medium-range surface-to-air missile system capable of intercepting drones, aircraft, and cruise missiles.

Pistorius confirmed the delivery timeline but firmly ruled out the possibility of sending Taurus missiles — weapons Kyiv has repeatedly requested to strike deep into Russian territory.

"You asked me whether we are considering this, and my answer is no," Pistorius said.

Before taking office, German Chancellor Friedrich Merz signaled openness to lifting former Chancellor Olaf Scholz's ban on the missiles. That stance has not yet resulted in a policy shift.

Ukraine has already received long-range missiles — including ATACMS from the U.S. and Storm Shadow and SCALP from the U.K. and France. Initially restricted to use within Ukrainian territory, Western allies only began easing those limitations in late 2024.

Germany is Ukraine's largest military donor in Europe. Pistorius said that Berlin will provide 9 billion euros ($10.4 billion) in aid this year, with investments in defense production being considered. The total includes an additional commitment in military aid worth 1.9 billion euros ($2.2 billion).

"Today, we discussed that this aid will continue," he said. "We agreed on additional investments in production... both in Ukraine and in Germany."

Zelensky visited Berlin on May 28 for talks with Merz, part of an ongoing effort to bolster Ukraine's defense industry amid uncertainty over U.S. support under President Donald Trump.

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The Kyiv IndependentKollen Post