Ukraine spends up to 60% of the general fund of the state budget on defence. This was announced by Prime Minister Denys Shmyhal during question time to the government in the Verkhovna Rada.
Points of attention
- Ukraine spends up to 60% of the general fund of the state budget on defence, Prime Minister Denys Shmyhal said.
- Financing of the army and defence costs is carried out exclusively from the internal sources of the country.
- Ukraine receives significant financial assistance from the USA, the European Union and other international partners.
- Restructuring of debt on Eurobonds helped Ukraine to save a significant amount of funds that can be used for defence.
- Until the end of 2024, Ukraine can receive additional funds from frozen Russian assets to support its defence potential.
Ukraine spends almost 60% of its total expenditure on defence
Shmyhal reminded that the army and defence expenses are financed only from domestic sources.
Defence expenditures make up to 60 percent of the total amount of expenditures of the general fund of the state budget.
Denis Shmyhal
Prime Minister of Ukraine
Funds are needed to provide the Defence Forces with everything they need. They will be sought domestically, although there are also needs for funding from partners.
The total needs of the country in external financing per year amount to 38 billion dollars. In 2024, Ukraine has already received an amount of 24.5 billion dollars.
The main donors are the USA, the European Union, the IMF, Great Britain, Canada and Japan.
The Prime Minister said that the government has an understanding of how exactly the needs in external financing will be covered.
5.4 billion dollars from the IMF, here we are approaching the fifth review of the cooperation program, in fact, today the mission in Ukraine, in Kyiv, continues, Shmyhal said.
Ukraine will receive 16 billion euros under the Ukraine Facility program. Washington will give Kyiv a little less than 8 billion.
Until the end of 2024, Ukraine can receive money from frozen Russian assets. They will also be spent on defence
This resource should arrive in Ukraine no later than the end of this year. These are funds to cover the budget deficit in the 25th year, these are also funds for the restoration and maintenance of our defense potential, Shmyhal said.
The Prime Minister reminded that Ukraine saved 11.4 billion dollars thanks to debt restructuring on Eurobonds. This is the amount that Kyiv had to pay over the next three years.
Ukraine completed debt restructuring
The Ministry of Finance previously reported that Kyiv managed to reduce the amount of debt to creditors and save money on interest, maintenance and debt repayment.
Ukraine agreed with investors to exchange 13 series of government Eurobonds and a series of Ukravtodor Eurobonds for eight new Eurobonds.
The total value of the new Eurobonds is 15.2 billion dollars. The total amount of debt on old Eurobonds, together with capitalized interest, amounted to 24 billion dollars.
97% of investors agreed to debt restructuring.
