The statement appeared to shut down calls from Ukraine for more financing this year as the EU insists there is still plenty of money on the table if Kyiv carries out reforms.

"Today through coordinated joint efforts, we have identified the means to cover Ukraine's budget and defence needs for 2026. We have also reconfirmed the steps needed to ensure their timely release," the European Commission and Ukraine said in a joint statement.

Brussels is currently paying out instalments of a 90-billion-euro ($102-billion) loan that is meant to help Kyiv keep afloat to the end of 2027.

But Kyiv has said it still needs some extra $20 billion to cover a yawning deficit this year and has urged the EU to speed up the payments.

"Our dialogue with the European Commission has delivered good results in addressing Ukraine's financial and defence needs for 2026 and 2027," Ukraine's President Volodymyr Zelensky posted online.  

"We have agreed on the format, timeline, and steps needed to ensure full coverage."

The joint statement made no mention of Ukraine being offered any additional funding.

Brussels has said previously that Kyiv had not fully explained its figures for the shortfall and needed to first focus on reforms to unlock funds.

Coming against a backdrop of a string of high-profile corruption scandals in Ukraine, diplomats in Brussels say there is greater scrutiny of Kyiv's demands. 

For next year, the statement said Brussels would "move forward swiftly with the allocation" of funds under the 90-billion-euro loan.

"We will also begin work on identifying additional budgetary and defence needs," it said. 

The EU has also been pushing other supporters of Ukraine such as Britain, Canada and Japan to help plug the financing gap.

"All sides agreed that other partners should also fulfil their financial commitments and step up their efforts in light of the significant challenges Ukraine is facing," the statement said.