This year, Ukraine will allocate 26% of its GDP to defense, with external financing needs exceeding $40B for next year.

During the 14th meeting of the Ukrainian Donor Platform’s Steering Committee within URC2025, Prime Minister Denys Shmyhal stated that by the end of June the government had submitted amendments to the state budget law, including nearly $10B more for defense. “The total for defense and security in 2025 will be nearly $50B, representing 26% of GDP,” he added.

Shmyhal explained that the weapons procurement budget has also hit a record of $16.4B while the government’s revenues will total $48.5B. “External financing is critically important because it enables Ukraine to allocate its own resources to national defense,” he emphasized.

According to Shmyhal, Ukraine has secured $22B in external funding this year, but next year’s need exceeds $40B, presenting a challenge.

Meanwhile, Finance Minister Serhiy Marchenko underscored the necessity of stable and predictable external support to sustain economic stability and facilitate reconstruction. He urged Ukraine’s partners to step up their efforts to confiscate frozen Russian assets, which would serve both as justice and a vital resource for rebuilding.