Ukraine needs to raise $60B for defense next year – Shmyhal

According to Ukrinform, Defense Minister Denys Shmyhal said this at a joint press conference with his British and German counterparts at NATO headquarters in Brussels on Wednesday.

"Russia spends about $150 billion per year to finance its military goals. The economy of war demonstrates that if you spend less, you begin to pay with lives and territory. So you need to hold this balance. As a minimum, we need to spend $120 billion for 2026. Next year, this is our minimum requirement," Shmyhal said.

He noted that Ukraine could cover only half of this amount.

"We can collect $60 billion through taxes, and every dollar from our taxes will be directed to cover these defense expenses. We need to collect the remaining amount together with our partners. These funds will be allocated between projects for European manufacturers – to produce European types of weaponry – and Ukrainian producers — for drones and Ukrainian weaponry," Shmyhal said.

He also expressed hope that the PURL initiative will continue to develop, with financing potentially coming, in part, from loans backed by frozen Russian assets.

"I am sure that the PURL project will continue. I believe that it will be modernized into a so-called 'Mega Deal,' where we will precisely note and make a list of weaponry that Ukraine will need if the war continues on such a scale. We will discuss this with our allies, together with our friends, together with Europeans, and the United States. I am sure that at the level of our presidents, this agreement will be reached. Then we will look for sources to support financing, and currently we are discussing how we can use frozen Russian assets," Shmyhal said.

He stressed that funds from Russian assets should be distributed to European allies, Ukrainian manufacturers, and co-financing of PURL in its "Mega Deal" version next year.

Photo credit: Denys Shmyhal / Telegram