$120 Billion for Ukraine’s Victory: Why 2026 Defense Spending Is an Investment in Global Security
120 Billion Dollars for Victory: Where Will Ukraine’s Defense Spending Go in 2026, and Why the World Must Continue Its Support
How can Ukraine secure $120 billion in 2026 to not only withstand the war but also modernize its army and industry?
In 2026, Ukraine will require at least 120 billion dollars to ensure its defense – a figure that reflects the true scale of the war that Russia has unleashed against the democratic world. This was stated by Defense Minister Denys Shmyhal during a meeting of heads of foreign diplomatic missions. The focus is not only on the internal transformation of the defense complex but also on sending a clear signal to allies: without systemic external support, it is impossible to contain a nuclear state waging war in a mode of "total resource mobilization."
These 120 billion dollars are not just about "surviving." They are about holding the front line, developing domestic industry, modernizing the army, and, most importantly, preserving its people.
How Will These Funds Be Spent?
Ukraine plans to secure half of this amount – approximately 60 billion dollars – through international support. Part of these funds will go toward purchasing weapons from partners, but crucially, 50% of all armaments in 2026 are planned to be procured within Ukraine. This is not merely an ambition – it is a continuation of the large-scale transformation of the defense industry that has already taken place over the past three years.
The priority is air defense systems, particularly those capable of intercepting ballistic missiles. This is a matter of survival for cities and critical infrastructure. At the same time, a significant portion of investments will be directed toward the production of FPV drones, long-range unmanned aerial vehicles, and interceptors. The focus is not only on quantity but also on technological superiority: the war has become a competition of engineering and digital solutions.
A separate expenditure item is the expansion of domestic production of ammunition, armored vehicles, artillery systems, and communication equipment. Funds are also allocated for the support of the digital army – the development of systems like "Army+," "Reserve+," and the DELTA combat platform.
Why Is This Support from Partners Critically Important?
It must be honestly acknowledged: the war Ukraine is fighting is an extremely costly process. But its defeat would be even more expensive. 120 billion dollars is an amount comparable to the expenditures of NATO countries during full-scale military campaigns. However, the difference is that Ukrainian soldiers are already defending not only themselves but also their allies. Ukraine is a "buffer," a "shield," and a "laboratory" where Western weapons, doctrines, and innovations undergo real combat testing.
Today, nine coalitions within the "Ramstein" framework coordinate security support for Ukraine. In 2025, such assistance reached a record $43 billion. The decision adopted at the NATO summit in The Hague, for the first time, officially recognizes this aid as part of the defense spending of Alliance member states. This is not "aid to Ukraine" but an investment in the security of all of Europe.
Every dollar invested in Ukraine’s defense returns to allies in the form of new combat practices, battle-tested technologies, innovative procurement models, and, ultimately, the security of their own borders.
What Has Changed in Ukraine’s Defense Sector Over the Past 3.5 Years?
Fundamentally – everything. As of 2022, Ukraine’s defense industry had a market size of about $1 billion. By 2025, it had grown to $35 billion. Over two years, more than $20 billion was invested in the sector, enabling a threefold increase in artillery production, a 2.5-fold increase in ammunition production, and 95% of FPV drones being supplied by Ukrainian manufacturers.
For the first time, allies are directly funding Ukrainian production – the so-called "Danish model."Under this model, more than $4 billion in foreign investments were attracted in 2025 for joint production. Twenty-one joint projects have already been implemented, with ten more in progress – not only in Ukraine but also in Ramstein member countries. Ukraine is gradually becoming a participant in the global chain of creating the weapons of the future.
The procurement system has also been overhauled. The Defense Procurement Agency and the state logistics operator DOT were established, saving over 15 billion hryvnias through transparent tenders. The introduction of digital systems has reduced delivery times fourfold. Ukrainian MilTech has become an independent sector capable of offering solutions at a global level.
War Is not Only about Weapons but Also about People. Personnel Is the Highest Priority
Defense reform would not be complete without changes in the treatment of soldiers. For the first time, a large-scale voluntary recruitment program was launched, with 50 centers established in major cities where mobilized individuals can independently choose their direction and unit. A contract service was introduced for young people aged 18–24, and a separate program was created for foreigners.
The digital ecosystem "Army+" allows 830,000 military personnel to submit reports, change units, undergo training, and access support programs. The "Reserve+" system enables 4.5 million military-eligible individuals to quickly process documents, deferrals, and medical examinations. This is the army of a new generation.
120 billion dollars is not the budget of a single country. It is a collective advance toward the future security of Europe, democracy, and the global order. Ukraine has done more than was expected of it. It has not only held its ground – it has reformed, modernized, and become a partner capable of sharing not only needs but also knowledge, technologies, and solutions.
Supporting Ukraine is not an expense. It is the smartest investment the civilized world can make today.
Bohdan Popov, Head of Digital at the United Ukraine Think Tank, communications specialist and public figure