Ukraine is proposing a record 4.89 trillion hryvnias (about US$110 billion) in defence spending for 2027 as the cost of its war with Russia continues to increase.
The proposed defence allocation would be about 12% higher than this year and account for roughly two-thirds of the government’s planned expenditure of 7.27 trillion hryvnias. The draft budget was submitted to parliament this week.
Parliamentary Budget Committee chair Roksolana Pidlasa said the proposed budget reflects the rising cost of the conflict. She said the daily cost of the war has increased to about US$190 million, compared with US$116 million in 2022, when Russia launched its full-scale invasion.
Ukraine expects government revenues to reach around 5.6 trillion hryvnias next year, leaving a substantial gap between projected income and expenditure.
Finance Minister Sergii Marchenko said Ukraine will require more than US$52 billion in international financial assistance in 2027. Around US$20 billion has already been covered through commitments from international partners, with the government seeking additional sources to finance the remaining shortfall.
Officials have also identified frozen Russian assets held in Europe as a potential source of funding. At the same time, Ukraine is pursuing tax and governance reforms linked to financial support from the European Union and International Monetary Fund.
The financial pressure is also affecting this year’s budget. Marchenko said Ukraine currently faces an additional US$27 billion shortfall in defence funding for 2026, as the government seeks to increase military salaries and expand weapons production.
Ukraine’s government says the 2027 budget is being prepared while the war continues and that meeting security and defence needs remains a central priority. The draft still needs to go through parliamentary review and approval before becoming law.
