**Ukraine Seeks Over $40 Billion in Foreign Aid for 2026, Says Prime Minister**
In a recent statement on Telegram, Ukrainian Prime Minister Denys Shmyhal revealed that his country will require more than $40 billion in external financial support next year to sustain its economy and war effort. This ambitious goal comes as Kyiv prepares to co-host the Ukraine Recovery Conference in Rome from July 10-11.
To put this figure into perspective, Ukraine’s government has already submitted budget amendments to increase defense spending by nearly $10 billion for 2025. This brings the total allocated for security and defense in 2025 to around $50 billion, or 26% of the country’s GDP. A significant portion of these funds – $16.4 billion – will be dedicated to weapons procurement.
**A Record Defense Budget**
Shmyhal’s comments highlight Ukraine’s determination to bolster its defenses amidst ongoing conflict with Russia. The government’s budget includes a record allocation for defense spending, demonstrating a commitment to effectively countering the enemy. This move has significant implications for Ukraine’s economy and war effort, as it requires substantial external financial support to implement.
**Foreign Financing Remains Crucial**
Despite increased defense spending, Ukraine still relies heavily on foreign financing to fund its budget. In fact, the government has already secured $22 billion in foreign financing for 2025. However, a projected budget deficit of $8 billion to $19 billion for 2026 threatens to undermine these efforts.
**Donor Countries Reassess Funding Plans**
The Financial Times reported on July 8 that many donors had previously expected a peace deal in 2025 but are now forced to revise their funding plans due to Russia’s continued offensive and rejection of calls for an unconditional ceasefire. This shift highlights the complexities and uncertainties surrounding Ukraine’s economic situation.
**Kyiv’s Call for Long-term Financing**
As Kyiv prepares to host the Ukraine Recovery Conference, Shmyhal emphasized the need for mechanisms and tools that will allow Ukraine to attract long-term financing. This call underscores the country’s determination to sustain its economy and war effort despite ongoing challenges.
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