Ukraine faces challenge of raising $120 billion for defense needs

One concern is that Ukraine’s defense spending currently accounts for about a third of the country’s gross domestic product (GDP), leaving Kiev heavily dependent on tens of billions of dollars in financial aid from Western countries to maintain its economic and military activities.

With heavy financial pressure, Ukraine emphasizes that 120 billion USD is a vital condition to maintain the army, but the solution of confiscating Russian assets is causing much debate (in photo: Ukrainian Defense Minister Denis Shmygal speaks at a press conference in Kiev). Photo: Kyodo/TTXVN

According to the European news network Eurativ.com, in the context of the ongoing conflict with Russia, Ukraine has just released an eye-catching figure: they need at least 120 billion USD for defense needs by 2026. This huge figure is not only aimed at maintaining the war with Russia but is also determined to be the necessary level to maintain military strength, even when the fighting ends.

The urgent financial need was announced by Ukrainian Defense Minister Denys Shmygal at a conference in Kiev on September 13. Mr. Shmygal stressed that Ukraine is facing the risk of losing more territory if it cannot keep up with Russia's military spending. "I must say that if the conflict continues, we will need at least $120 billion for next year," Mr. Shmygal said.

One concern is that Ukraine’s defense spending currently accounts for about a third of the country’s gross domestic product (GDP), leaving Kiev heavily dependent on tens of billions of dollars in financial aid from Western countries to maintain its economic and military activities.

Financial solutions: Should Russian assets be seized?

To ease the financial burden on Ukrainians, who have already suffered significant tax losses after nearly four years of fighting, Mr. Shmygal has come up with a bold proposal: Use Russian assets frozen in the West to cover Ukraine’s defense costs.

However, implementing this idea is not simple. Russia has flatly condemned any attempt to confiscate their assets as "theft" and warned of "consequences".

On the European Union (EU) side, European Commission President Ursula von der Leyen said the bloc was looking at ways to maintain supplies for the Ukrainian army. She proposed using frozen Russian assets to finance a “compensation loan” to Ukraine, but insisted the 27-member bloc would not seize the assets itself. This shows the EU’s caution before a decision that could cause complicated legal and political consequences.

So, with its $120 billion defense budget, Ukraine is sending a message: it will continue to build and maintain a strong military, ready to deal with potential future threats. However, the big question remains: how can Ukraine raise this huge amount of money, especially when it is heavily dependent on foreign aid and faces Western countries' wariness about handling Russian assets?

Source: https://baolamdong.vn/ukraine-doi-mat-thach-thuc-huy-dong-120-ty-usd-cho-nhu-cau-quoc-phong-391402.html