Ukraine faces $27 billion war funding gap as government turns to austerity

Koretskyi said the government plans to cover about $7 billion of the $27 billion through savings, spending restraint and reallocations.

“This means strict austerity in public finances and postponing some nonessential spending. These funds are intended, among other things, to ensure payments to service members and support for their families,” Koretskyi said. “The remaining $20 billion is the subject of negotiations with our partners.”

The prime minister said the funding “will determine our ability to conduct active combat operations, including in the first quarter of 2027, because we need to pay for production of the necessary weapons.”

He said this applies primarily to Ukraine’s long-range strike capability — Ukrainian strikes on Russia.

“This is a critical need that must be met,” Koretskyi stressed.