Shmyhal: Ukraine will need at least $120bn for defence in 2026

What happened

In 2026, Ukraine will need at least $120 billion for military spending. This was stated by the Minister of Defence Denis Shmygal during the annual conference Yalta European Strategy (YES), held on 12-13 September 2025 in Kyiv. According to him, this amount is needed to hold the frontline and minimise losses if the war continues. Even if the fighting stops, there will be a need for «not much smaller» - to restore stocks and maintain combat capability in case of repeated Russian aggression.

What the funds will be used for

Shmyhal outlined three key funding priorities:

• Drones and ammunition: FPV and robotic systems, artillery shells, including long-range ones;
• Protecting the skyBallistic missile defence systems and interceptor drones;
• Long-range capabilitiesIncreasing the production of Ukrainian drones and missiles.

Reasoning

«The economy of war shows that if we spend less than Russia, we pay with territories and lives,» the minister emphasised, calling for attract all possible sources of funding. He also supported the use of income from frozen Russian assets as a stable source for defence and reconstruction - until the actual payment of reparations to Russia.

Context.

The estimate of $120 billion was made against the backdrop of the preparation of a new instrument of international assistance to Ukraine and work on the new IMF programme, which should take into account the budget needs until 2026. Earlier, the IMF confirmed its readiness to form a new support package together with Ukraine.

What's next

The government and partners are working on Sources to cover the needs of 2026Domestic revenue, bilateral and multilateral aid, and mechanisms related to income from frozen assets of the Russian Federation. Additional announcements are expected after consultations with allies and financial institutions.

Sources.

1. Reuters - Ukraine will need at least $120bn next year for defence efforts, defence minister says (13.09.2025). Reuters
2. Interfax-Ukraine - Ukraine's Defence Minister: at least $120 billion for 2026; even with the cessation of hostilities, «not much less» (13.09.2025). Interfax-Ukraine
3. YES - confirmation of the dates and venue of the 21st Annual Meeting (12-13.09.2025, Kyiv). yes-ukraine.org
4. IMF - statement on the formation of a new support programme for Ukraine (11.09.2025).