Koretsky: Ukraine's defense sector needs $27 billion — Cabinet of Ministers seeks funding sources

At the YES Annual Meeting 2026 conference, organized by the Viktor Pinchuk Foundation, Ukrainian Prime Minister Serhiy Koretsky announced a new need of $27 billion for the country's defense sector. According to him, this figure covers not only the Ministry of Defense but the entire complex of security structures: the Special Operations Forces, the Security Service of Ukraine, border guards, the National Guard, and, of course, the Ministry of Defense itself. "This is the main challenge," the head of government emphasized, speaking to the forum's participants, as reported by RBC-Ukraine.

Funding sources

According to Koretsky, the Cabinet of Ministers is currently considering several options to cover this need. These include attracting external sources of financing, as well as optimizing all possible expenditures within the state budget. The Prime Minister noted that it is precisely the combination of these measures that should make it possible to cover "if not the full 27 [billion], then at least the lion's share of these expenses." Thus, the government does not promise to cover the need from a single source, but rather relies on a combination of instruments.

Deadlines and risks

The context for the Prime Minister's statement was set back at the end of August, when President Volodymyr Zelensky publicly declared a critical need for additional funding for the Armed Forces. In his assessment, the figure is the same $27 billion, with about $10 billion of this sum needed by the end of the current year. The Ministry of Defense stated that a plan to cover the need has already been developed. However, according to RBC-Ukraine sources, the issue must be resolved within September so that in October the Armed Forces do not face a serious shortage of funds. This turns the coming weeks into a critical period for making financial decisions.

Contradictory data

There are several nuances in the wording of the parties that are important to consider. First, in his speech Koretsky initially referred to the $27 billion as the "need of the Ministry of Defense of Ukraine," and then immediately corrected himself, clarifying that the figure refers to the broader sector — the "Armed Forces of Ukraine" as a whole, including the Security Service, border guards, and the National Guard. Second, the need is presented as "new," while the Ministry of Defense claims that a plan to cover it already exists; however, the very fact of the urgent September deadline indicates that this plan is not yet backed by real financing. Finally, the fiscal pressure is compounded by the fact that, due to delays in meeting the requirements of EU and IMF support programs, Ukraine has still not received 30 billion euros — a separate but closely linked shortfall to the defense issue.

Context: a regime of strict austerity

The new needs of the defense sector are not the only problem facing the Cabinet of Ministers. Due to delays in meeting the requirements of EU and IMF support programs, Ukraine has still not received the 30 billion euros, which has forced the government to shift into a regime of strict austerity. Under these conditions, finding sources for the $27 billion for defense becomes an even more difficult task, since the budget's internal reserves are already being used to cover current expenditures.