President Volodymyr Zelensky said Ukraine faces a $27 billion defense budget shortfall, calling for early disbursement of European loan funds.
Zelensky made the remarks in a statement following a meeting with leaders of the Coalition of the Willing hosted in Kyiv, on Monday, Aug. 24, as Ukraine marked its 35th Independence Day. He said the Defense Ministry had used funds allocated for the end of the year earlier than planned because of the budget’s structure.
“We now have to operate under funding constraints,” Zelensky said, adding that “one of the main options is to provide funds from the European loan ahead of schedule, already this year.”
Frozen Russian assets
Zelensky said Ukraine must also pursue other ways to finance its defense against Russia’s invasion, pointing to frozen Russian assets held in partner countries, including Europe and Japan.
“Wherever those assets are held, we need to find a fair way to use them to defend against Russia’s war,” Zelensky said.
He also praised the Coalition of the Willing for bringing together countries prepared “not only to talk about security, but to act and build real security together.”
Black Sea corridor
In a follow-up statement, Zelensky said Russia was attempting to disrupt Ukraine’s maritime corridor in the Black Sea, particularly by trying to impose a total blockade.
“Three to four ships still enter and leave Odesa each day, despite Russian strikes on port infrastructure,” Zelensky said, adding that traffic through the corridor had been three to four times higher before Russia began attempting to block the route.
To address the issue, Ukraine is considering several options with allied countries, including a negotiating track with Russia, as well as stronger air defenses for the grain corridor.
The consequences of reciprocated strikes on port infrastructure in the Black Sea continue to disrupt trade far beyond Ukraine’s borders, as reduced Ukrainian agricultural exports drive up food prices globally.
Turkey has experienced repeated stray-drone incidents, along with attacks on Turkish-flagged fishing vessels, and has even called on Russia and Ukraine to take direct measures to ensure navigational safety in the Black Sea.
However, Russia has rejected the idea, with Foreign Ministry spokeswoman Maria Zakharova saying Moscow had not received a formal proposal from Turkey. She also warned against “half-measures” that would give Ukraine relief without resolving the wider conflict.
Other EU countries have also faced violations of its airspace by Russian drones.
Romanian military divers destroyed two Gerbera-type drones found drifting near the strategic Neptun Deep offshore gas project in the Black Sea on Aug. 11, weeks after the NATO country began shooting down frequent stray drones.
“No country has the right to starve the world,” Foreign Minister Andrii Sybiha said on July 23, arguing that coordinated international pressure could force Russia to stop the attacks.
Meeting with EU’s Costa, Luxembourg’s Frieden
Separately on Monday, Zelensky met European Council President António Costa, with whom he discussed Ukraine’s defense and economic needs.
Patriot interceptors remain a priority as Ukraine continues to prepare for the upcoming autumn and winter.
“We also discussed how the EU can help Ukrainian exports withstand Russia’s terrorist strikes on ports and agriculture,” Zelensky said. “It is important that we find joint European solutions to all these challenges,” he continued.
Zelensky also met Luxembourg Prime Minister Luc Frieden, calling the visit a “strong and much-needed signal” of support for Ukrainians defending the country.
Luxembourg is ready to seek solutions for Ukraine’s Defense Forces funding and the country’s budget shortfall – both bilaterally and through the EU, according to Zelensky.
He thanked the country for its readiness to support humanitarian efforts as well, including the reconstruction of university dormitories. “Above all, this is about our young people and the future of our country,” Zelensky said.