Prime Minister of Ukraine: Military spending this year reached US$155 billion, with a shortfall of US$27 billion
Quick Look
- Ukrainian Prime Minister Koretsky said that military expenditure this year will reach 155 billion U.S. dollars, and there is still a funding gap of 27 billion U.S. dollars.
- The government plans to raise US$7 billion through budget adjustments, and the remaining US$20 billion needs to rely on the support of allies to ensure military combat capabilities and long-range strike capabilities in early 2027.
AI-generated summary
Why It Matters
Ukraine has released its annual military expenditure estimate for the first time, showing that all of its annual revenue has been invested in national defense. Russia's defense budget for 2027 has also increased significantly to 17.1 trillion rubles.
Ukrainian Prime Minister Serhii Koretskyi said today (30th) that Ukraine's total military expenditure this year is expected to be 155 billion U.S. dollars (approximately NT$4.9368 billion). There is currently a funding gap of 27 billion U.S. dollars, and the government is working hard to fill it to ensure that the Ukrainian army can still maintain combat effectiveness in early 2027.
"Reuters" reported that Koretsky stated that the government intends to make up for US$7 billion by deferring fiscal expenditures, reallocating other budgets and cutting costs. As for the remaining US$20 billion, it will need to discuss with allies how to raise it.
Koretsky also emphasized that it is crucial to fill the $27 billion funding gap so that arms orders for early next year can be paid. "Our ability to conduct active combat operations, including in the first quarter of 2027, depends on this funding, which is related to our long-range strike capabilities and our ability to burn the war back to its source."
Koretsky also said that if the government fails to fulfill its previous reform commitments to the International Monetary Fund (IMF) and the European Union, Ukraine may not receive a foreign aid of approximately US$29.5 billion. "The government is working as quickly as possible to fulfill all obligations before October 15. This is very important and must be implemented as soon as possible."
"Reuters" pointed out that this is the first time Ukraine has announced annual military expenditure estimates. Ukraine's annual revenue target for this year is approximately US$70 billion (approximately NT$2.2295 billion), and all of it has been used for national defense needs. This means that Ukraine completely relies on the military support and financial transfusions of its Western allies to continue fighting Russia.
On the Russian side, the defense budget for 2027 is approximately 17.1 trillion rubles (approximately NT$6.4522 billion), an increase of approximately 27% from the originally planned 13.5 trillion rubles. It is also the highest military expenditure since the full-scale war between Russia and Ukraine in 2022.
What to Watch
AI outlook — possibilities, not facts
Ukraine government will try to complete reform commitments by October 15 to obtain aid
Likely · Within weeks
Open Questions
- Will Western allies make up for the $20 billion gap?
- Can Ukraine fulfill its reform commitments by October 15?
