The Ukrainian government is preparing amendments to the 2026 State Budget aimed at enhancing the country’s defense and security sectors. This initiative follows the approval of a substantial €90 billion loan from the European Union, designated for the years 2026-2027.
Prime Minister Denys Shmyhal indicated that Ukraine anticipates receiving €45 billion in support this year, with €31.8 billion allocated specifically for defense and security needs. An additional €13.2 billion is earmarked to address budget deficits, with the first tranche expected to be disbursed in June.
To bolster the security and defense sectors, the budget will include an extra 1.56 trillion UAH. This funding will be directed towards various initiatives, including:
- 1.397 trillion UAH to enhance the country’s defense capabilities, which corresponds to approximately €28.3 billion from the EU loan for defense needs this year;
- 152.26 billion UAH to support the Armed Forces of Ukraine, primarily focusing on personnel compensation;
- 14.58 billion UAH to replenish reserves for the security and defense sectors;
- 3.15 billion UAH for the development of the defense industry;
- 2.13 billion UAH allocated to the State Special Transport Service;
- 9.91 billion UAH for the National Guard, covering both personnel compensation and armaments;
- 6.79 billion UAH for the State Border Guard Service, also encompassing personnel compensation and weaponry;
- 4.8 billion UAH for the State Special Communications Service, focusing on drone procurement;
- 2.47 billion UAH for the Security Service of Ukraine, mainly for personnel compensation;
- 1.83 billion UAH for the Main Intelligence Directorate of the Ministry of Defense, covering both personnel compensation and armaments;
- 7.8 million UAH for the Foreign Intelligence Service.
The head of the Budget Committee emphasized that this funding will effectively double military expenditures, reflecting Ukraine’s ongoing commitment to strengthening its defense posture amid current geopolitical tensions.
Ukraine is set to significantly increase its defense and security budget for 2026, following a €90 billion EU loan approval. The planned funding aims to enhance military capabilities and support the Armed Forces amid ongoing geopolitical challenges.