Ukraine needs to raise $8–10 billion right now to provide the army with weapons and the civilian population with air defence systems for January and February 2027. President Volodymyr Zelenskyy made this statement on 23 August during the North-Baltic Eight summit in Kyiv. According to him, advance funding is required due to the length of time procurement takes.
Briefly about the main points
- Funds are needed well in advance due to the lengthy arms procurement cycle.
- Approximately $20 billion is required for the final four months of 2026.
- The defence budget deficit for the whole of 2026 is estimated at $27 billion.
- Kyiv is counting on its partners, agreed funding and Russian assets.
- The financial problem is exacerbated by the ballistic missile threat and lower-than-expected deliveries of Patriot systems.
Procurement determines the need for advance funding
Zelensky He emphasised that the lack of funds directly affects Ukraine’s ability to plan its defence for the coming year. Contracts for weapons and air defence systems take time to draw up and fulfil, so funding for the start of the year must be secured in advance.
The President described the shortfall in defence funding as one of Ukraine’s two main challenges in the near future. He identified countering Russian ballistic missiles as the second.
Requirements until the end of the year and the Ministry of Defence’s budget deficit
Ukraine needs to find a further $20 billion for the last four months of 2026, the President said. A significant portion of this sum is to be allocated to the pay of service personnel, payments to the families of those killed in action, and other defence expenditure.
Zelenskyy had previously estimated the Ministry of Defence’s total budget deficit for 2026 at approximately $27 billion. According to his explanation, some of the funds earmarked for the second half of the year had been spent earlier, notably on the production of drones and other military requirements.
Kyiv is counting on its partners and Russia’s frozen assets
Zelenskyy cited one of the possible sources for meeting these needs as Frozen Russian assets. Ukraine also plans to work with its European partners on a bilateral basis and to speed up the disbursement of funding packages that have already been allocated.
Kyiv is expecting around €30 billion in European funding, but receiving these funds depends on the necessary decisions being taken. The President has stated that he is discussing defence funding, in particular with France and Germany.
In April, the Council of the EU finalised approval of a €90 billion loan to Ukraine for the period 2026–2027. Approximately €60 billion of this is earmarked for defence industrial capabilities and the procurement of defence equipment; however, the funds are allocated in accordance with specific procedures and designated purposes.
The ballistic threat heightens the need for interceptors
Russia is attempting to ramp up production to 1,300 ballistic missiles a year. Meanwhile, Ukraine is expecting to receive 264 Patriot interceptor missiles in 2026 — fewer than the 364 in 2025 and 675 in 2023.
NATO reported that the mechanism PURL, under which the allies fund the procurement of priority US weaponry, is one of the channels for supplying air defence systems. According to NATO Secretary-General Mark Rutte, around 70% Patriot missiles have been supplied to Ukraine through this initiative since its launch.
