Ukraine proposes record defense spending next year as war costs soar

Ukraine is proposing ​record defense spending for 2027 as the cost of the war with Russia, now in its fifth year, ‌rises and the country needs more financial support from its partners, Reuters reported, citing officials.

Defense spending is expected to hit 4.89 trillion hryvnias ($110 billion) in 2027, 12% higher than this year. It accounted for about two-thirds of the total spending in a draft 2027 budget of 7.27 trillion hryvnias presented to ​parliament on Wednesday.

Budget revenues are forecast at 5.6 trillion hryvnias.

"This is the sixth budget of the full-scale war, and it's ​again bigger than the previous one. During these years, the war has become more expensive," said Roksolana ⁠Pidlasa, head of the parliamentary budget committee told lawmakers.

"At the same time, state revenues ... are not growing at the same pace as ​spending is increasing."

The daily cost of the war has risen to $190 million this year compared with $116 million in 2022 at the start ​of Russia's invasion, Pidlasa said.

Finance Minister Sergii Marchenko said told parliament that Ukraine would require more than $52 billion in international financial aid next year.

President Volodymyr Zelenskiy's government has secured commitments from partners to cover around $20 billion and was in talks on how to cover the remaining amount, he said.

Marchenko said that ​Russian assets frozen by Ukraine's European allies could become a key source to cover the budget gap in 2027.

Lawmakers have until October ​1 to review the draft budget and submit their proposals. The spending plan must be passed by parliament in three readings by December 1.