Defense dominates the 2027 budget
Ukraine’s parliament approved the 2027 state budget in its first reading with 239 votes in favor, 25 votes against, and 26 abstentions. I find the concentration of funds on military needs the most significant aspect of this proposal. The budget prioritizes security and defense as Russia’s full-scale war continues.
| Financial Spec | Amount |
|---|---|
| Total Revenue | Hr 5.65 trillion ($123 billion) |
| Total Expenditure | Hr 7.27 trillion ($159 billion) |
| Defense Allocation | Hr 4.89 trillion ($107 billion) |
| Projected Deficit | Hr 1.7 trillion ($37 billion) |
| Minimum Monthly Wage | Hr 9,546 ($203) |
| Subsistence Minimum | Hr 3,559 ($78) |
Prime Minister Serhiy Koretskyi says the budget reflects the realities of Russia’s full-scale war and the country’s needs for the coming year. "First and foremost, this means the necessary funding for security and defense, maintaining financial stability and meeting important social commitments to the people," he said. The government allocates Hr 4.89 trillion ($107 billion) to security and defense. This amount equals 43.8% of the projected gross domestic product. MPs and parliamentary committees submitted over 5,000 amendments, so the government will submit a second draft for a second reading in November.
Zelensky reacts to energy truce
President Volodymyr Zelensky told journalists at a closed-door briefing on Oct. 27 that Ukraine halted attacks on Russian oil refineries for three days. This pause followed an Oct. 11 announcement by U.S. President Donald Trump that an energy ceasefire between Ukraine and Russia took effect. Zelensky says the announcement surprised him. While Ukraine suspended strikes on Russian oil refineries for 72 hours to observe the ceasefire, Russia continued attacking Ukraine’s energy infrastructure, which places the power system under significant strain during the approaching winter. This lack of reciprocity from Russia is a disappointing reality for Kyiv.
During the three-day pause, Ukrainian forces focused on other targets like data centers and locations where Russian ballistic missiles concentrate. Zelensky says they also hit the Ryazan oil refinery on Oct. 15. "I said, ‘Let’s respond calmly by striking other targets for at least 72 hours. We won’t touch the oil refineries.’ That didn’t help. There was all kinds of rhetoric, and no one thanked us for those three days," Zelensky said. He notes that Ukraine did not target ships carrying diesel fuel from Russia to the U.S. under an agreement Trump announced on Oct. 9. The U.S. Treasury Department also issued a general license to suspend U.S. sanctions on Russian diesel fuel until April 2027. Trump also postponed action on a bill from U.S. Senator Lindsey Graham that would impose tariffs of up to 500% on Russian goods and 100% on imports from countries that help Moscow evade sanctions.
