Ukraine’s Minister of Finance, Serhii Marchenko said that the country needs €70 billion for defence in 2027, of which €40 billion currently remain unfunded.
Plan to attract funds by the end of 2026
Marchenko said Ukraine expects to attract a further $25 billion of international financing to the state budget by the end of 2026. He stressed the need for long-term, predictable partner support that will not increase the debt burden.
According to the minister, it is important to ensure the debt neutrality of financial mechanisms and to prevent an increase in debt-servicing costs, in particular through mechanisms backed by income from frozen Russian assets.
Impact of attacks on the economy and budgetary priorities
Marchenko noted that systematic attacks on the energy sector, transport infrastructure and enterprises affect economic activity, employment, exports and tax revenues. This puts additional pressure on public finances and leads to shortfalls in the state budget.
At the same time, Ukraine continues to fully fund priority needs — defence, pensions, wages and social payments — and is implementing reforms necessary to attract international assistance.
Estimates of external financing needs for 2027
The total estimate for defence needs in 2027 is €70 billion, of which €40 billion are currently unfunded. According to Dragon Capital, the requirement for additional external financing for the budget in 2027 will be $30−35 billion.
Current international partners’ support programmes provide only $20 billion of external financing for budget needs, and the shortfall could grow due to a possible reduction in tax revenues of $4−5 billion.
