EU Loan Restrictions Block Military Pay Raises Up to 460,000 Hryvnias.

Frontline Troops to See Salary Hikes, but EU Credit Cannot Fund Them

According to Novyny.live: Ukraine is moving forward with plans to increase monthly salaries for military personnel to as much as 460,000 hryvnias. However, before these raises can take effect, the government must conduct a thorough audit of military expenditures. This review is intended to uncover efficiencies and reallocate funds to support higher pay. At the same time, Kyiv cannot tap into European Union loans to cover these salary increases.

According to available data, Ukraine’s national budget allocates $65 billion to the armed forces, with $32 billion of that going directly to troop salaries. Of the remaining funds, 10–15% of a separate $9 billion pool is dedicated to logistics and rear-support operations. Yet, as presidential adviser Oleh Ustenko explained,

“European Union credit funds cannot be redirected to pay Ukrainian military salaries.”

Funding Military Needs

The government has also considered expanding the state budget deficit by 70–100 billion hryvnias, a move that could affect how military needs are financed. Ustenko added that

“if such an audit is carried out, the funds could be found.”

The path to higher military pay remains uncertain, hinging on the audit’s findings and the government’s ability to free up internal funds. For an English-speaking audience, this situation underscores Ukraine’s broader fiscal challenge: balancing urgent defense spending against strict EU lending rules that prohibit using borrowed money for salaries. As the war continues, the pressure to compensate troops fairly collides with the limits of both domestic revenue and international credit.

Ultimately, the outcome will depend on political will and the effectiveness of financial oversight within Ukraine’s defense sector.