Ukraine revises budget as EU loan unlocks billions for defence spending

Ukraine is revising its state budget after securing access to a major EU financial package that Kyiv says will provide tens of billions of euros for defence, security and wartime fiscal support, reported Ukraine Business News.
Prime Minister Yulia Svyrydenko said Ukraine expects to receive €45bn this year under the EU’s broader €90bn support programme, with the first tranche scheduled to arrive in June.
“This year we expect €45bn in support, of which €31.8bn will be for defence and state security, another €13.2bn to cover the budget deficit,” Svyrydenko said.
According to the government, the financing will increase state budget revenues by more than UAH2.2 trillion ($53bn), allowing Kyiv to significantly boost military and security spending as the war with Russia continues.
The revised budget allocates an additional UAH1.56 trillion to the security and defence sector. Of that amount, UAH174.3bn will go towards financial support for military personnel, while UAH1.37 trillion is earmarked for the development and procurement of weapons and military equipment.
Another UAH14.6bn will be directed into a dedicated reserve for the security and defence sector.
The government said separate funding streams would also support the expansion of Ukraine’s domestic defence industry, including weapons production and equipment modernisation efforts that Kyiv sees as increasingly critical amid uncertainty over the pace of future Western military deliveries.
In addition to defence spending, the revised budget includes UAH40bn for regional and municipal “Comprehensive Resilience Plans”, aimed at preparing the country for the autumn and winter heating season.
Officials said the funds would be used to strengthen energy infrastructure protection, repair damaged systems and ensure the stable functioning of critical infrastructure after repeated Russian missile and drone strikes on Ukraine’s energy sector.
A further UAH40bn will be channelled into the government’s reserve fund to allow rapid responses to wartime emergencies and unforeseen expenditures.
The financial package comes as Ukraine continues to rely heavily on external assistance to finance its budget and sustain military operations. European officials have described the EU programme as one of the bloc’s largest support initiatives for Kyiv since the war began in 2022.
The support is also expected to ease pressure on Ukraine’s domestic borrowing market and foreign currency reserves, while helping stabilise public finances amid rising defence costs and a slower-than-expected economic recovery.
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