Europe Faces Heavy War Financing Burden: Ukraine Will Need Nearly $390 Billion by 2029
During times of large-scale conflicts in Europe, one of the most pressing issues remains the financing of defense efforts and economic stability.
According to recent estimates, Ukraine will need approximately $389 billion USD by 2029 to maintain its defense capabilities and rebuild the country.
This amount is nearly twice the aid Ukraine has received from European countries since the onset of Russia’s full-scale invasion.
Daily expenses related to the war with Russia amount to about $172 million, highlighting the critical need for ongoing international support to sustain the country’s military and economic resilience.
Analysts forecast that between 2026 and 2029, total funding requirements for military aid and reconstruction could reach nearly $390 billion.
It is also noted that the United States is gradually decreasing its financial involvement in supporting European defense, placing a greater burden on EU nations.
Ukraine currently spends around $65 billion annually on defense and an additional $73 billion on other state needs, with total budget revenues of only about $90 billion, resulting in an annual deficit of roughly $50 billion.
To cover these costs and fund the country’s recovery, European nations would need to increase defense spending to 0.4% of NATO GDP, excluding the US.
In search of alternative sources of funding, the European Commission considers leveraging Russian assets, specifically the frozen assets of Russia amounting to $163 billion stored across Europe.
However, this approach raises concerns in Belgium over potential legal actions by Russia, since most of these funds are held in Euroclear, a depositary bank based in Brussels.
According to Vladimir Kim of Дзеркало тижня, Russia spends over $850 million daily on its war against Ukraine, totaling approximately $25.7 billion per month and over $309 billion annually.
Since February 2022, the total expenditure has already surpassed $1 trillion.