KYIV, Sep 30 (Reuters) – The total costs of the war in Ukraine will reach US$155 billion this year, and the government is facing difficulties to cover a deficit of US$27 billion in order to ensure that it can still conduct combat operations in the early part of 2027, said Prime Minister Sergii Koretskyi on Wednesday.
Koretskyi said that the government planned to cover US$7 billion of the deficit by delaying expenditures, reallocating resources from other parts of the budget, and cutting some costs. The government was also negotiating with partners on how to cover the remaining US$20 billion.
It is the first time Kyiv has disclosed an estimate of its annual war costs, which means there is no comparable figure for 2025, but officials said the cost of the conflict rose as the use of missile and drone technology grew.
The figure of US$155 billion covers both domestic public spending as well as extra-budgetary military aid from Ukraine’s Western allies, including air defense missiles, munitions and aircraft provided as equipment.
Koretskyi said it is essential that Ukraine be able to cover the US$27 billion deficit in its military spending for 2026, as this would help meet defense orders for the start of the next year.
“Our ability to conduct active combat operations, including in the first quarter of 2027, depends on this funding. It applies to our long-range capabilities and to our ability to take the war back to where it began,” Koretskyi said.
“This is a critical need that must be addressed.”
FINANCIAL RESILIENCE
With the war in its fifth year and spending soaring, the conflict has become, in part, an exhausting battle of financial resilience.
Ukraine’s total budget revenue is projected at around US$70 billion this year and is fully directed to defense needs. The country relies on military and financial support from its Western allies in order to remain in the fight.
Russia plans to spend 17.1 trillion rubles (US$202.58 billion) on defense in 2027, about 27% more than the 13.5 trillion rubles originally forecast in the budget, and the highest figure since the invasion began in February 2022.
Ukraine is still finalizing its military spending plans for the coming year.
In 2026, Kyiv faced difficulties in receiving external aid and financial support on time and in full, due to delays in implementing reforms, corruption scandals, and disputes between the government and Parliament over unpopular legislation.
Koretskyi said that US$29.5 billion in external aid would be at risk if Kyiv does not meet its reform commitments with the International Monetary Fund (IMF) and the European Union.
“The government is working as quickly as possible to meet all of its obligations by October 15,” Koretskyi said. “This is extremely important. It must be done as soon as possible.”
