Ukraine plans record defence spending in 2027

Ukraine has announced plans to allocate a record two thirds of its budget to defence spending in 2027, as the country continues to battle Russian aggression, according to government documents. This unprecedented allocation represents around 44% of Ukraine's GDP and marks a significant increase in defence spending since Russia's invasion began in 2022.

The Ukrainian government seeks to secure an additional $53 billion in foreign aid, including contributions from the International Monetary Fund and World Bank, to help finance the enhanced defence budget. Finance Minister Sergiy Marchenko emphasized that defence remains the government's top priority, with internal state resources being directed towards strengthening Ukraine's resistance against the aggressor.

Of the projected $4.9 trillion hryvnia ($109 billion) allocated to defence and security, about a third will be spent on soldier wages, while the remaining funds will primarily be directed towards weapons and equipment. Russia, in contrast, intends to allocate around 13.6 trillion rubles ($161 billion) to defence in 2027, accounting for roughly 30% of its budget.

President Volodymyr Zelensky warned parliament would need to pass some unpleasant and unpopular measures to attract foreign financing, including a tax on foreign parcels. Without these measures, the president stated, Ukraine would be unable to meet the full defence requirements and maintain resilience in the face of ongoing aggression.