Ukraine plans record defence spending in 2027

Ukraine has announced plans to allocate a record two-thirds of its 2027 budget to defence and security, as the ongoing war with Russia continues to take a heavy toll on its economy. According to government documents, the country aims to spend approximately 4.9 trillion hryvnia, or US$109 billion, on defence and security in 2027, which amounts to around 44% of its GDP and marks a new high since the Russian invasion began in 2022.

The draft budget, released by Ukraine's finance minister Sergiy Marchenko, emphasizes that security and defence remain the government's top priority amid ongoing Russian aggression.

About one-third of the defence budget will be used to pay soldiers' wages, while the rest will primarily go towards acquiring weapons and equipment, according to the release. This allocation comes as the war has inflicted billions of dollars in destruction on Ukraine's economy and significantly strained its financial resources. The Ukrainian government has previously relied on its own revenues for defence spending but has increasingly sought foreign assistance, with additional US$53 billion in aid expected from international backers like the International Monetary Fund and World Bank in 2027.

President Volodymyr Zelensky warned parliament that passing "unpleasant and unpopular" measures might be necessary to secure foreign financing, including a tax on foreign parcels. Currently, Ukraine has received around US$200 billion in financing from foreign partners since the invasion began in 2022, alongside billions of dollars in military aid. Russia, in contrast, plans to spend approximately 13.6 trillion rubles, or US$161 billion, on defence in 2027, accounting for about 30% of its budget.