Ukraine’s war budget has $52 billion hole, and army needs $45 billion more on top
The West won’t send Ukraine the billions it needs until Kyiv delivers the reforms it promised.
Ukraine is facing a $52 billion shortfall in its war budget for 2027, with the country's Prime Minister, Serhii Koretskyi, emphasizing the critical need for additional funding. The defense and security sector alone will consume nearly 44 percent of the GDP, highlighting the immense strain on the nation's economy. Koretskyi warns that this funding gap is exacerbated by Russia's relentless attacks on Ukraine's critical infrastructure, including business and production facilities.
Russia's assaults have already resulted in a 57.3% decline in the steel industry, a key contributor to Ukraine's revenue and employment. Moreover, Russia's destructive efforts are projected to reduce tax revenues by approximately $1.5 billion by year-end. In addition to the $52 billion budget requirement, Ukraine's Defense Forces will need an extra $45 billion, equivalent to around 40 billion euros, for the same period.
Unlocking this additional funding hinges on Ukraine's implementation of reforms, which the government plans to finalize in the coming days. These reforms include approvals essential for sustaining the budget. The government will also seek support from international bodies, such as the IMF, the World Bank, and the EU, to secure the necessary funds.
Written by urgent.news from Euromaidan Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
