Ukraine Parliament Approves $7.7B Defense Budget Increase for 2025

Ukraine's parliament has approved an amendment to the 2025 state budget to increase defense spending by approximately $7.7 billion (about 325 billion hryvnias), raising total defense expenditures to nearly 2.96 trillion hryvnias ($70.86 billion) for the year. The largest portion of the additional funds will support the Armed Forces of Ukraine, weapons and ammunition production, and the National Guard, with smaller allocations for drone procurement, intelligence services, and border security. This budgetary increase is partly financed through international aid, including a €6 billion non-repayable loan from the European Recovery Instrument and funds derived from frozen Russian assets, which are being allocated specifically to military purposes. The budget also includes cuts to non-military spending and additional tax revenue generated from increased military salaries to help cover costs. Ukrainian officials emphasized the necessity of this increase due to ongoing intense combat along extensive frontlines and the growing demand for ammunition and weapons. The approval of these amendments ensures the timely payment of military personnel and sustained financial support for Ukraine's defense efforts amid the continuing conflict with Russia.