Ukraine says defence funding is secured through end of 2025
The Ukrainian government says it has sufficient budget funding for the Defence Forces through the end of 2025 and has completed regional payments for the previous month. It is seeking parliament's support for legislation needed to secure additional external financing, including at least €4 billion expected in December.
Key points
- The government says defence funding is sufficient in full through the end of 2025.
- All regional payments for the previous month had been completed by October 30.
- Ukraine expects at least €4 billion in external financing to arrive in December.
- Total external financing needs stand at approximately €29 billion.
- Further macrofinancial assistance requires decisions by the Verkhovna Rada, Ukraine's parliament.
- The government temporarily suspended regional payments and non-priority capital investment due to a liquidity gap.
- Parliament approved an additional 1.56 trillion hryvnia in defence spending in June.
Why it matters
Ensuring continued defence payments and completing suspended regional payments were presented as the government's top priority. Additional macrofinancial assistance and the expected December disbursement also depend on timely parliamentary decisions, while the reported funding gap and missed partner commitments increase the urgency.
What happened
The government said the budget fully covers the Defence Forces through the end of 2025, while all regional payments for the previous month had been made by October 30. It also confirmed that there is no threat to defence payments and that all defence expenditure will be funded.
The liquidity gap had previously prompted the suspension of regional payments, non-priority capital investment and funding for stability-plan measures. On October 16, the government began gradually releasing the suspended funds. It also redirected money from the security and defence sector's reserve toward military and family payments, with more than 50 billion hryvnia allocated for those payments on October 2.
Ukraine is seeking parliament's support for the remaining complex bills to unlock further macrofinancial assistance. At least €4 billion is expected in December, against an overall external financing need of about €29 billion.
How Ukrainian sources describe it
Ukrainian reporting focuses on the government's assurance that the Defence Forces will be fully funded and that the backlog of regional payments has been cleared. It also highlights the liquidity gap, spending cuts, parliament's June decision to increase defence spending, the resumption of suspended financing and the reallocation of security-budget reserves. Parliamentary approval is framed as necessary to secure further assistance and December funding, while the government's failure to meet part of its commitments to partners is presented alongside the loss of expected funds.
Background
The Cabinet of Ministers announced maximum spending cuts in September because the budget lacked sufficient funds. Ukraine also failed to meet part of its commitments to partners, resulting in the loss of funds it had expected to receive. In June, parliament approved a 1.56 trillion hryvnia increase in defence spending, which was expected to be funded mainly through the European Union's Ukraine Support Loan. The Defence Ministry, General Staff and Force Logistics Command reviewed contracts and planned procurement on October 6, and the ministry planned to free 15.6 billion hryvnia for more current military needs.