Ukraine drafts record $110 billion defence budget for 2027 as war costs surge
Ukraine's draft 2027 budget proposes defence spending of 4.89 trillion hryvnias, about $110 billion, a 12% rise over this year.
Ukraine has submitted a draft budget for 2027 that earmarks 4.89 trillion hryvnias for defence, representing about two-thirds of the total 7.27 trillion hryvnia plan and a 12% increase from one outlet year. The proposal comes as daily war costs have risen to $190 million, up from $116 million in 2022, and state revenues are not keeping pace. Finance Minister Sergii Marchenko told parliament that more than $52 billion in international assistance will be required, while President Volodymyr Zelenskiy noted existing partner commitments cover roughly $20 billion.
Officials highlighted frozen Russian assets held by European allies as a potential financing source. Parliament must review the draft by October 1 and pass it in three readings by December 1. Recent tax and customs reforms aim to meet IMF and EU conditions and could unlock about €4 billion in EU macro-financial support.
Why it matters
The budget reveals Ukraine's escalating financial needs and its reliance on foreign aid to sustain the war effort.
How this story developed
- Aug 30 Ukraine's new defence minister seeks early EU loan by outlining detailed war strategy
- Sep 10 Ukrainian President Volodymyr Zelenskyy arrived in Calgary to meet Prime Minister Mark Carney and later speak to a cabinet in Banff.
- Sep 10 Zelensky added stops in Toronto and North Bay before leaving Friday.
- Sep 10 Zelensky and Carney formalised a declaration of a long‑term partnership covering defence and energy cooperation.
- Sep 11 Hungary set a December 2026 deadline for Ukraine to adopt education‑law guarantees for the Hungarian minority.
- Sep 11 President Nicușor Dan will attend the European Arctic Summit in Rovaniemi, Finland on September 13-14, 2026, alongside leaders from Germany, Poland, Denmark and EU officials.
- Sep 11 Ukrainian intelligence now reports that daily Russian casualties regularly exceed recruitment capacity.
- Sep 12 The Parliamentary Assembly of the Council of Europe formally requested that frozen Russian central‑bank assets be redirected to Ukraine for reparations.
- Sep 12 A declaration establishing a 100‑year partnership was signed by President Volodymyr Zelensky and Prime Minister Mark Carney.
- Sep 12 President Volodymyr Zelensky called the EU's move to consider easing sanctions on Russian billionaires immoral and self-destructive as the bloc struggles to renew the measures before the September 15 deadline.
- Sep 14 The summit is being held in Rovaniemi, Finland.
- Sep 14 Bucharest will host an upcoming Eastern Flank summit.
- Sep 15 EU Coreper authorized a week‑long postponement of the sanctions expiry.
- Sep 15 Leaders issued a joint declaration urging the EU to adopt a stronger, better‑funded Arctic strategy.
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