Ukraine funding gap requires more EU money, Merz says

German Chancellor Friedrich Merz said Thursday that the European Union would have to find more money to finance Ukraine, as Kyiv warns it faces a major budget shortfall next year.

“We must do everything we can to help Ukraine through the winter and also to help next year,” Merz said at the start of a two-day summit of EU leaders in Brussels. “We will have to increase the funds again here in order to really assist Ukraine on a lasting basis.”

Ukrainian President Volodymyr Zelensky was heading to Brussels to join the meeting on Friday as he seeks more support. Ukraine faces a difficult winter as Moscow has stepped up bombardments, while Kyiv's ties with Washington have come under strain.

Ukraine has complained that its battlefield access to the US-provided Starlink satellite communications system has been hampered. The item also says relations with Washington have soured after US President Donald Trump struck a deal with Russia to supply diesel fuel.

Several EU leaders voiced support for Ukraine. Dutch Prime Minister Rob Jetten said the bloc stood “shoulder to shoulder” with Ukrainians, while Estonian Prime Minister Kristen Michal backed Ukraine's right to target Russian refineries despite US pressure to stop hitting Moscow's oil production.

EU leaders are expected to discuss how to keep Ukraine funded next year, with existing money under pressure. The EU has a 90-billion-euro loan for Kyiv that was intended to help cover funding until the end of 2027, but Ukrainian authorities have warned they will need tens of billions more.

The European Commission has said it is working with Kyiv on a definitive figure for next year. The talks have renewed calls for the EU to use about 200 billion euros in frozen Russian central bank assets to fund Ukraine, but Belgium, where most of the assets are held, remains opposed.

Merz rejected any attempt by the United States to push Europe to hand over some of the frozen money as part of Washington's peace negotiations with Moscow. “These are assets that are frozen in Europe, and they should remain frozen in Europe. This is our business, and we will decide on it,” he said.