Ukraine approves US$34.7bn increase in defence and security spending

The Verkhovna Rada (Ukrainian Parliament) has passed a bill in its entirety that provides for a UAH 1.56 trillion (approximately US$34.7 billion) increase in spending on the security and defence sector.

Source: the relevant draft law No. 15224, which was supported by 242 MPs

Details: The increase in expenditure is expected to be funded primarily through financial assistance under the EU's Ukraine Support Loan programme.

The adopted document is entitled On Amendments to the Law of Ukraine On the State Budget of Ukraine for 2026 regarding financial support for the security and defence sector.

The explanatory note clarifies that part of Ukraine's "military" personal income tax, an additional levy on personal income tax introduced to fund defence needs, will be allocated to payments for the destruction of Russian unmanned aerial vehicles.

Quote: "The military levy and export duties on military and dual-use goods, credited to the special fund of the state budget, shall be allocated to the Ministry of Defence of Ukraine for the procurement, modernisation and repair of weapons, military equipment, facilities and equipment; the implementation of measures to reform and develop the defence industry; the development, mastering and introduction of new technologies; the expansion of existing production capacities for the manufacture of defence products; and the provision of financial support to servicemen of the Armed Forces of Ukraine, in accordance with the procedure established by the Cabinet of Ministers of Ukraine…"

Background: The Verkhovna Rada adopted the document as a basis on 28 May 2026, with 240 MPs voting in favour. On 8 June, it emerged that the Committee on Budgetary Matters had recommended that the draft law on financing the security and defence sector be adopted in full.

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