Budget context
Ukraine's 2026 budget law, signed by President Zelenskyy in December 2025 after extensive Rada debate, allocates ₴2.8 trillion (~$66 billion) to the defence and security sector — 27.2% of projected GDP and roughly 60% of all state expenditure. Within that envelope: ~₴1.3 trillion for personnel salaries (frontline troops earn ~₴100,000/month), ₴709.8 billion for weapons and equipment, and ₴139 billion in unforeseen reserves. The April 2025 EU agreement provides €45 billion in 2026 (first tranche June 2026) to backfill non-military expenditure freed up for defence. SIPRI's $84.1B figure for 2025 captures actual outlays rather than the higher 2025 budget law commitment of ₴2.2 trillion. Foreign military assistance (US PDA, EU PMA, ERA loan from frozen Russian assets) is excluded from SIPRI's figure.
Force structure
The Defence Forces of Ukraine total ~880,000 personnel under the Commander-in-Chief, General Oleksandr Syrskyi (since February 2024). Components include the Armed Forces (Ground Forces, Air Force, Navy, Air Assault Forces, Special Operations Forces, Unmanned Systems Forces — created June 2024 as the world's first dedicated drone branch), the National Guard, the State Border Guard Service, and Territorial Defence Forces. Brigade-level reorganization to corps structures began late 2024 to address command-and-control problems. The Air Force operates F-16s (delivered from Denmark, Netherlands, Norway, Belgium since August 2024) alongside MiG-29s and Su-27s. Ukraine has lost ~30 of an estimated 80 F-16 commitment to date. Drone units field over 1.5 million UAVs annually.
Industrial posture
Ukraine's defence industry has expanded dramatically under wartime mobilization. The state holding (formerly Ukroboronprom, restructured 2023 as JSC Ukrainian Defence Industry) and a sprawling ecosystem of ~500 private firms produce 1.5+ million FPV drones annually, 200,000+ artillery shells, the Bohdana 155mm SPG (production lines reportedly hit 36/month by late 2025), and the Neptune anti-ship/land-attack cruise missile (used in long-range strikes on Russian territory). Long-range "deep strike" drones — including the Liutyi, Bober, and AN-196 — have struck oil refineries up to 1,800 km inside Russia. Foreign joint ventures with Rheinmetall (Lynx IFV plant), BAE (in negotiation), and Czech firms expand capacity. Domestic procurement covers ~40% of military needs by value.
Conflict exposure
Ukraine remains in active high-intensity warfare with Russia in its fifth year. The contact line of ~1,200 km runs through Donetsk (Pokrovsk, Kostiantynivka, Toretsk axes), Zaporizhzhia, Kharkiv, and Kherson oblasts. Russian forces hold ~18% of Ukraine's pre-2014 territory. Ukraine's August 2024 Kursk Oblast incursion held ground inside Russia until Russian/North Korean counter-offensives reduced the bridgehead through 2025. Long-range strikes continue against Russian energy infrastructure, drone factories (Alabuga), and Black Sea Fleet assets. The Black Sea Fleet has been pushed largely out of western Crimea by Magura V5 USVs and Storm Shadow/SCALP-EG cruise missiles.
Recent developments
SIPRI's April 2026 release placed Ukraine #7 globally at $84.1B, a 20% real-terms rise. The Unmanned Systems Forces, established June 2024, is the world's first dedicated drone service branch. President Zelenskyy and Donald Trump signed the US-Ukraine Reconstruction Investment Fund (critical-minerals deal) on April 30, 2025. F-16 deliveries continued through 2025 with the first Dutch jets arriving in February 2025. EU candidate negotiations opened June 2024; Cluster 1 (fundamentals) opened June 2025. The 2026 EU loan agreement (€45B) was finalized April 2025, partly backed by frozen Russian sovereign assets via the ERA loan.