Ukraine needs USD 389 billion to continue fighting russia - The Economist

The confrontation with russia will require long-term support from the West: according to experts, Ukraine will need about USD 389 billion in the next four years (2026-2029). This is reported by The Economist.

According to the Kyiv-based investment company Dragon Capital, Ukraine's current annual military budget is about USD 65 billion, with another USD 73 billion spent annually on other government needs. Ukraine raises about USD 90 billion in revenues domestically, and another USD 50 billion is the budget deficit. The country receives part of its armaments as free aid - this year it will amount to about USD 40 billion.

The publication notes that Ukraine's military spending is growing by about 20% annually, although it remains at the level of two-thirds of russian spending. A senior Kyiv official estimates that moscow's real military spending could be more than double the official budget figures.

The Economist predicts that Ukraine's military spending is growing by 20% annually.

The Economist predicts that Ukraine's arms needs will grow by 5% annually, while other government spending will remain at the current level. The only exception will be the costs of repairing the destroyed infrastructure and rebuilding the country - about USD 5 billion a year.

Thus, Ukraine's total needs for the next four years, including free weapons, budget support and reconstruction costs, are estimated at USD 389 billion.

If Washington does not participate in financing these costs, other NATO countries will have to increase their spending from about 0.2% to 0.4% of GDP.

As the Ukrainian News agency earlier reported, Western allies may offer Ukraine an alternative strategy of investing in rearmament instead of joining NATO.

Over six months of 2025, the EU transferred EUR 10.1 billion to Ukraine, received at the expense of income from the frozen assets of the Central Bank of russia.

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