Ukraine will require no less than $120 billion in 2026 to ensure its defense capability if the war with the Russian Federation continues. This was stated by Ukraine’s Minister of Defense, Denys Shmyhal, during the annual YES conference in Kyiv.
This is reported by Finway
“If the war ends, we will need a similarly substantial amount just to keep our army in good shape in case of further aggression from Russia,” Shmyhal added.
Defense Spending is Rising
Currently, Ukraine spends about 31% of its gross domestic product on defense, which is a record figure globally. According to Concorde Capital, last year defense and security expenditures amounted to approximately $95 billion, and this year they are expected to rise to $100–105 billion. Half of this amount is covered by the state budget, while the other part is provided by international partners.
Securing Aid and New Initiatives
In addition to military expenditures, Ukraine receives about $40 billion in external financial support annually for non-military purposes, allowing budget funds to be directed towards defense. For 2026, Finance Minister Serhiy Marchenko forecasts a need for external financing of the state budget deficit at the level of $45 billion. Of this, sources for covering €16 billion have yet to be determined.
Denys Shmyhal also supported the idea of using frozen Russian assets to compensate for damages inflicted on Ukraine and its allies during the war. He proposed creating a so-called Kill Zone along the front line, which would involve “drone lines covering 10, 15, or even 30 km of territory,” to prevent future aggression from Russia.