Ukraine plans record defence and security spending of 4.885 trillion hryvnias, about $110 billion, in its draft 2027 budget. The allocation equals 43.8% of projected GDP, while Kyiv says it will need $52.6 billion in international support to keep its wartime finances stable.
Ukraine defence budget reaches wartime record
Ukraine’s government has proposed 4.885 trillion hryvnias for defence and security in 2027, an increase of 517.9 billion hryvnias, or 11.9%, from the amended 2026 plan. The figure represents almost 44% of forecast GDP and roughly two-thirds of total planned state expenditure.
Finance Minister Sergii Marchenko said security and defence remain the government’s top priority as Russian attacks continue. The draft budget directs 1.79 trillion hryvnias toward military pay and related costs, while almost 2.3 trillion hryvnias is earmarked for weapons and military equipment. Another 264.9 billion hryvnias is set aside as a defence reserve.
Foreign aid remains critical for 2027 budget
Ukraine expects total state spending of 7.272 trillion hryvnias next year, while projected revenues stand at 5.648 trillion hryvnias. That gap means foreign financial assistance will remain essential even as Kyiv directs most domestic resources toward the war effort.
The Finance Ministry estimates Ukraine will need $52.6 billion in international support in 2027. Kyiv plans to seek funding from the European Union, G7 partners, the International Monetary Fund, the World Bank, Britain and other governments and institutions.
The scale of the requirement reflects the growing economic burden of the war. Ukrainian officials say military costs have continued to rise while Russian attacks have damaged infrastructure, disrupted exports and placed additional pressure on government revenue.
Kyiv weighs difficult revenue measures
Ukraine is also considering additional domestic revenue measures to meet conditions attached to international financing and strengthen the budget. Parliament has advanced proposals involving taxation of foreign parcels and changes to customs rules as part of wider fiscal and governance reforms.
The government has stressed that these measures are intended to preserve military financing while maintaining spending on healthcare, education, veterans and internally displaced people. The budget still requires parliamentary approval before it becomes law.
Black Sea attacks add another security challenge
Ukraine’s financial pressures come as security risks also increase in the Black Sea. Turkey has submitted a draft proposal to Russia and Ukraine aimed at reducing attacks on civilian vessels and restoring safer passage for commercial shipping.
A Turkish defence source said almost 90 ships were attacked in August, while Turkey’s IMEAK Chamber of Shipping reported that at least 22 Turkish-owned vessels were hit in the period leading up to August 27. Turkey has warned that continued attacks could threaten navigation, trade and food security across the region.
For Ukraine, the 2027 draft budget shows how deeply the war now shapes national finances. Defence remains the dominant expense, while foreign financing and continued economic reforms will be central to Kyiv’s ability to sustain both military operations and essential public services.
