Ukraine proposed joint funding of the Armed Forces with the EU starting in 2026.

Ukraine is negotiating with the EU on financing for the Armed Forces

Ukraine is actively engaging with European partners to transition to a systematic funding model for the Armed Forces. This was stated by Finance Minister Serhiy Marchenko during a meeting of the financial bloc of the G7 in Canada.

Ukraine has proposed to European countries funding for the Ukrainian Armed Forces with the aim of integrating them into a pan-European defense system, which should be more effective and economically viable.

'What we offer: the participation of partners in financing the Ukrainian Armed Forces and, accordingly, the integration of the Ukrainian army into Europe's defense system. The costs of supporting the Ukrainian Armed Forces for the security of Europe will constitute a small share of the EU's GDP'

According to Marchenko, this approach will bring strategic advantages to both sides, allowing Ukraine to achieve financial stability, while the EU gains protection from possible Russian aggression.

The initiative is becoming increasingly important in light of the financial challenges of the future, which foresee a significant reduction in international financial assistance. Ukraine is already considering raising VAT and introducing a progressive income tax to increase domestic revenue.