The Ukrainian government plans to spend two-thirds of its budget on defense next year, a record high, as the costs of the war with Russia continue to rise.
The Russian offensive, now in its fourth year, has severely damaged the Ukrainian economy, causing billions of dollars in destruction and creating a massive gap in Kyiv's finances.
Ukraine initially used its own revenues to fund defense spending, but has become increasingly reliant on foreign aid to cover these expenses.
The Ukrainian government announced it will seek an additional $53 billion in foreign aid next year, including from the International Monetary Fund and the World Bank.
"The 2027 draft budget was prepared in the context of ongoing Russian aggression, and while security and defense needs remain critical," Ukrainian Finance Minister Serhiy Marchenko said in a statement Tuesday.
“This is undoubtedly the government’s top priority, as all available domestic resources are being directed toward ensuring Ukraine’s ability to effectively repel the aggressor,” he added.
Ukraine plans to spend 4.9 trillion hryvnia ($109 billion) on defense and security in 2027, equivalent to about 44 percent of its GDP and a record high since the start of the Russian invasion in 2022, according to the statement.
The statement indicated that about a third of this amount will be allocated to military salaries, while the remainder will largely be directed toward weapons and equipment.
In contrast, Russia plans to spend about 13.6 trillion rubles ($161 billion) on defense in 2027, equivalent to about 30 percent of its budget.
Ukrainian President Volodymyr Zelensky warned on Tuesday that parliament would have to pass “unpleasant and unpopular” measures to attract foreign funding, including a tax on parcels arriving from abroad.
He said, "At the moment, without these things, it is impossible to fully meet our defense needs and ensure Ukraine's resilience."
Ukraine has received nearly $200 billion in funding from its foreign partners since the start of the war, in addition to billions of dollars in military aid.
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