Topic: Budget and taxes
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Ukraine says defence deficit for 2026 is $27 billion, $20 billion in partner talks
Ukrainian Prime Minister Serhiy Koretsky said Ukraine's 2026 defence budget deficit stands at $27 billion. About $7 billion is to be covered through domestic austerity and reallocation, while the remaining $20 billion is being negotiated with international partners. The government is racing to meet commitments by mid-October or risk losing access to $29.5 billion in planned international financing.
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Proposal would shift frozen Russian assets from Euroclear and Clearstream to a new EU custodian
A proposal presented in Brussels by political commentator Hugo Dixon and co-authors would transfer frozen Russian Central Bank accounts from national depositaries — including Euroclear in Belgium and Clearstream in Luxembourg — onto the balance sheet of a special EU instrument acting as custodian. The mechanism, modelled on the post-Saddam transfer of Iraqi Central Bank accounts, is designed to shield depositaries and Belgium from Russian lawsuits while creating legal and financial groundwork for eventually using the assets in Ukraine's interests. Ukrainian Finance Minister Serhiy Marchenko has publicly backed revisiting the use of frozen Russian assets, citing an acute wartime budget deficit.
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IMF estimates Ukraine's financing gap at $54 billion through 2029 as donors meet in Brussels
On September 29, Ukraine's donors gathered in Brussels to accelerate talks on further financial assistance, as IMF estimates put Ukraine's financing gap at about $54 billion through 2029. EU member states remain divided on whether to use roughly €210 billion in frozen Russian central-bank assets or issue new common debt, while the European Commission and IMF tie further assistance to Ukraine's implementation of a reform plan.
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Ukraine's defense minister asks EU for Patriot missiles and funding for drone interceptors
Ukraine's Defense Minister Yevheniy Khmara addressed EU defense ministers on September 28 at a meeting of the EU Foreign Affairs Council, asking member states to transfer part of their Patriot missile stockpiles to Ukraine and to help finance Ukrainian production of interceptors for jet-powered Shahed-type drones. He also requested air-to-air missiles, man-portable air defense systems (MANPADS), and F-16 ammunition, and called on partners to move EU loan funds planned for 2027 into 2026.
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US signs $20.7 billion preliminary deal with Raytheon to ramp up AMRAAM missile production
The US Department of Defense has reached a preliminary multi-year agreement worth $20.7 billion with Raytheon, a division of RTX, to accelerate production of AMRAAM missiles. The contract is part of a broader Pentagon effort to rebuild munitions stockpiles drawn down by transfers to allies and US military operations.
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Ukraine's farmers face funding crunch as Black Sea exports remain blocked, minister warns
Ukraine's Minister of Agrarian Policy and Food Taras Vysotsky has warned that Ukrainian farmers are running out of money, with a more severe funding crisis likely in spring due to the continued blocking of Black Sea grain exports. The European Commission declined Ukraine's request for €220 million in farmer support, and Ukraine is instead counting on a $250 million concessional loan from the World Bank.
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Ukraine suspends non-priority spending as PM warns of critical fiscal squeeze
Ukraine's Cabinet of Ministers approved a decision on 28 September prioritizing state expenditures toward defense, pensions, social payments and public-sector salaries, while suspending non-critical construction, reconstruction, capital repairs and beautification projects until the end of the war. Prime Minister Serhiy Koretsky said part of the pressure stems from delayed international financing, in part because Ukraine has not fulfilled some of its commitments to international partners. The government has identified about $7 billion through internal optimization against a reported $27 billion Ministry of Defense deficit.
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Ukraine's PM ties 2027 VAT hike to war-risk insurance fund for businesses hit by Russian strikes
Prime Minister Serhiy Koretsky said a planned 1-percentage-point increase in Ukraine's standard VAT rate, from 20% to 21% under the draft 2027 state budget, is needed to finance a new fund that would promptly compensate businesses for damage caused by Russian missile and drone strikes. Speaking to TSN.Tyzhden, he said Ukraine plans an initial state contribution of about $1 billion, with the government expecting international partners to add roughly four times that amount for a total fund of about $5 billion.
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Ukraine's 2027 defense budget leaves $70 billion shortfall, ministry says
Ukraine's Ministry of Defence estimates 2027 defense needs at $175 billion, nearly double the roughly $100 billion allocated in the government's draft state budget. Officials say the $70 billion gap must be closed with international partners through instruments such as the Ramstein format and PURL. The draft, Ukraine's sixth wartime budget, projects total expenditures above 8 trillion hryvnias and relies on foreign assistance to cover a 4.3 trillion hryvnia gap.
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Ukraine's defense budget faces $27 billion deficit, PM says $20 billion to come from partners
Prime Minister Serhiy Koretsky said Ukraine's defense budget has a $27 billion shortfall — part of the $155 billion war financing figure declared at February's Ramstein-format meeting. Around $7 billion is to be covered through domestic austerity and internal reallocation, with roughly $20 billion being sought from international partners for drones, missiles and military equipment.
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EU member states agree on how to release €6.6 billion from European Peace Fund for Ukraine
EU member states agreed on conditions for releasing €6.6 billion from the European Peace Fund for Ukraine, ending a freeze imposed since spring 2023 by Hungary's veto. The announcement was made on 25 September by EU High Representative for Foreign Affairs and Security Policy Kaja Kallas, who called the deal "good news for Ukraine and bad news for Russia." The deal still requires formal adoption by EU defense ministers.
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Zelensky tells IMF's Georgieva in New York that Fund will help Ukraine secure part of 2027 financing
President Volodymyr Zelensky met IMF Managing Director Kristalina Georgieva on the sidelines of the 81st UN General Assembly in New York on September 22, and said the IMF will help Ukraine find part of the funds needed for its financial stability in 2027. Zelensky told Georgieva that the Verkhovna Rada had already passed some of the legislation required by partners and that the remaining laws would be adopted by year's end.
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Ukraine receives $841 million from World Bank under Canadian guarantees for pension payments
Ukraine has received $841 million in financing from the World Bank under guarantees from the Canadian government, with the funds directed to reimbursing state budget pension expenditures. The transfer was raised under the PEACE in Ukraine project, whose total volume has now reached $54.3 billion. Prime Minister Serhiy Koretsky announced the funding via Telegram and thanked Canada and the World Bank for timely assistance amid a significant budget deficit.
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Russian strikes idle three plants that produced 90% of Ukraine's steel
Russian ballistic missile strikes in early September knocked out three major Ukrainian metallurgical plants — Zaporizhstal, Kametstal and ArcelorMittal Kryvyi Rih — which together had accounted for about 90% of Ukraine's steel output. The attacks killed 17 workers and halted production at facilities employing more than 15,000 people. Metinvest's Oleksandr Vodoviz said Ukraine "effectively no longer has a steel industry."
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EU draft budget for 2028–2034 includes €100 billion for Ukraine, diplomat says figure not questioned
The EU's draft Multiannual Financial Framework for 2028–2034 includes a planned €100 billion allocation for Ukraine, according to reporting by European Pravda. A senior EU diplomat familiar with the budget preparations said the figure is not currently being questioned among member states. A significant portion of the EU leaders' summit on 15–16 October in Brussels was to be devoted to the long-term budget.
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Norway to allocate 1 billion kroner through EU's Ukraine Facility, first non-EU contributor
Norway announced on September 17 that it will allocate 1 billion Norwegian kroner (approximately 90–92 million euros) through the EU's Ukraine Facility mechanism to support Ukraine's state budget and reforms in anti-corruption and energy. Norway becomes the first non-EU country to contribute to the mechanism. The announcement was made during European Commissioner for Enlargement Marta Kos's visit to Norway.
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Zelensky orders return of asset declarations for rear-echelon security officials, signs call-center fraud law
On 16 September 2026, President Volodymyr Zelensky announced the preparation of a decision to reinstate mandatory asset declarations for law enforcement officers and Security Forces members who are not at war, in a scope sufficient to monitor their property and lifestyle. In the same address he signed a law introducing criminal liability for fraudulent call centers and ordered a vetting of all heads of central executive bodies, citing high corruption risks at the tax service, ARMA, and various inspectorates.
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Ukrainian parliament approves in first reading VAT on foreign marketplace purchases
On 16 September, the Verkhovna Rada voted in first reading for a package of bills introducing VAT on goods bought through foreign marketplaces, regardless of value. 273 MPs backed the Tax Code amendment and 267 supported a separate customs bill. Finance Minister Serhiy Marchenko said the legislation is part of Ukraine's obligations to the IMF and the EU and warned that the country has already missed a €4 billion tranche, with an October tranche still contingent on passage.
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Ukraine's government submits 2027 draft budget to parliament: defense at 44% of GDP, $52.6 billion external financing required
Ukraine's Cabinet of Ministers approved and submitted the draft State Budget for 2027 to the Verkhovna Rada on September 15, 2026. The bill, registered as No. 16000, allocates 4 trillion 885 billion hryvnias (about 43.8–44% of GDP) to defense and security, projects total expenditures of 7 trillion 272 billion hryvnias, and identifies an external financing requirement of $52.6 billion, of which only $20 billion has been confirmed by partners.
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NABU exposes bribery scheme at Ternopil Oblast tax office, two officials detained
Ukraine's National Anti-Corruption Bureau (NABU) exposed a systematic bribery scheme at the Main Department of the State Tax Service in Ternopil Oblast. Two senior officials — a deputy head of the regional tax administration and a head of one of its territorial units — were detained after being caught receiving a bribe through an intermediary. They face up to 12 years in prison under Ukraine's Criminal Code.