The Ministry of Defence estimates the total funding required to wage war in 2027 at approximately $175 billion — $20 billion more than this year. At the same time, the draft state budget currently provides for funding of approximately $100 billion. Ukraine intends to cover the remainder in collaboration with international partners, in particular through direct arms supplies.
- The Ministry of Defence estimates that the requirements for 2027 will amount to $175 billion.
- The budget provides for approximately $100 billion.
- The unmet need is estimated at $70–75 billion.
- Potential sources have already been identified for around $20 billion.
- Some of the needs are to be met by international partners.
Defence requirements will increase in 2027
According to estimates by the Ministry of Defence, the total cost of the war could rise to $175 billion. By way of comparison, the requirements for 2026 were estimated at approximately $155 billion. This was announced by the First Deputy Minister of Finance Roman Yermolichev during the budget debate.
In the project the 2027 state budget almost has been allocated to the security and defence sector 4.9 trillion UAH. This is approximately 518 billion hryvnias more than the amount earmarked for 2026. However, even this amount is not enough to fund all the war’s needs on its own.
The Ministry of Defence’s estimate of $175 billion is a broader concept than direct expenditure from the state budget. Ukraine receives part of its military requirements from its partners not in the form of money, but as weapons, ammunition, equipment and other resources.
There is a shortfall of around $70–75 billion
According to current estimates, there remains a gap of approximately $ 70–75 billion. Yermolichev emphasised that they plan to cover this shortfall through various mechanisms of international military aid — not just through direct funding.
These include:
- arms supplies from partners;
- the «Ramstein» format of the Contact Group on Defence Issues in Ukraine;
- the procurement of American weapons through the PURL mechanism;
- other bilateral and multilateral military assistance programmes.
That said, of the approximately $70–75 billion that remains unfunded, potential sources have currently been identified for only about $20 billion. The remaining funding still needs to be secured.
What is a PURL?
One of the key tools remains Prioritised List of Ukraine’s Requirements — PURL.
Through this mechanism, allies and partners fund the purchase of US weapons and ammunition that are critically needed by Ukraine, whilst NATO coordinates their transfer. This relates, in particular, to air defence systems and ammunition, which the US can supply in significantly larger quantities than individual European countries. Consequently, part of the $175 billion required for the war may not pass directly through the Ukrainian budget at all — it will be covered by partners in the form of ready-to-use weaponry.
The 2027 Budget has already increased defence spending
The government’s draft state budget provides for almost 4.89 trillion hryvnias for the security and defence sector, which represents 43.8% of projected GDP. In particular, around 1.79 trillion UAH is earmarked for pay and related allowances, whilst nearly 2.3 trillion UAH is to be spent on armaments and military equipment.
The Ministry of Finance emphasises that the 2027 budget is already being drawn up on the assumption that the full-scale war will continue. Consequently, securing additional military aid from partners will be one of the key issues for defence funding next year.
