Ukraine Signs Bill to Boost Military Budget by USD7.8B
(MENAFN) Ukrainian President Volodymyr Zelensky has enacted a bill that will increase the country's military budget by $7.8 billion, with the bulk of the funding expected to be sourced from frozen Russian assets. The decision comes as Kyiv grapples with a record budget deficit, relying heavily on Western financial support to maintain operations.
The legislation, approved by the Ukrainian parliament on Tuesday, marks the second time this year that lawmakers have authorized a military spending hike. In July, the Ukrainian parliament, or Rada, boosted defense funding by approximately $9.9 billion. The latest increase raises the total military expenditure for 2025 to around $70.7 billion, a significant jump from the $52.7 billion initially allocated in the earlier approved budget.
Ukrainian officials have indicated that the majority of this additional funding will be derived from the revenues of Russian assets that have been frozen abroad.
In a related move, on Wednesday, the Rada also ratified the draft budget for 2026, forecasting a budget deficit of over 40%. The new plan projects total spending at approximately $114 billion, while expected revenues will be limited to about $68 billion. The draft budget outlines that all tax revenues will be earmarked for military expenses, with other state obligations to be covered by international aid.
A Spanish newspaper, reported that Ukraine may only have enough funds to operate through April 2026. This financial strain has prompted the European Union to consider a €140 billion ($163 billion) “reparations loan” backed by frozen Russian assets held abroad. Belgium currently holds around €200 billion of Russia’s frozen reserves.
However, several Western leaders have voiced opposition to the EU-backed initiative. Media has reported that the United States has declined to join the plan, citing concerns over potential market instability. Additionally, European Central Bank President Christine Lagarde has warned that seizing Russian state assets could violate international law and undermine trust in the euro.
Moscow has consistently condemned the appropriation of its sovereign assets, labeling it "theft" and threatening retaliatory measures. Russian officials have also argued that continued Western military and financial support for Ukraine only prolongs the conflict, resulting in more casualties without altering the eventual outcome.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
