Ukraine plans to marshal $120 billion for defense and security in 2026, drawing on its state budget, EU loans and assistance from international partners.
Ukrainian defense enterprises will produce more than 7 million drones of various types for the Armed Forces of Ukraine (AFU) this year, Deputy Defense Minister Serhiy Boyev said, according to the Defense Ministry.
He said the AFU has already created a 20-kilometer-deep strike zone at the front thanks to unmanned technologies, and now aims to extend it to 100 kilometers by targeting the logistics of Russian occupying forces deeper behind the lines.
Boyev emphasized that this year’s top priorities are strengthening Ukraine’s air defense and supplying it with surface-to-air missiles, procuring longer-range munitions, and ramping up domestic drone production. Kyiv urged international partners to direct 80% of their support to these areas.
Implementing Ukraine’s 2026 military strategy will require $120 billion. Some $60 billion will come from the state budget and EU loans, with another $60 billion expected from international partners as security assistance. In 2025, Kyiv secured $45 billion in aid for the AFU from international partners - the highest amount since Russia’s full-scale invasion.
Last year, Ukrainian defense companies attracted more than $6 billion in foreign financing. Kyiv signed agreements with the United Kingdom, Germany and the Netherlands on joint UAV production. In the UK, serial production of Ukraine’s Octopus drones - designed to destroy enemy strike UAVs - is set to begin soon. Starting in February 2026, Ukraine and Britain are expected to produce 1,000 Octopus drones per month.
At the same time, foreign defense companies - primarily those specializing in unmanned technologies - are setting up manufacturing inside Ukraine. As of December 2025, 25 foreign firms were establishing production on Ukrainian territory, according to the Defense Ministry.
