Funding to Mitigate Military Risks
The Ukrainian government is preparing to allocate approximately $1 billion in the national budget to insure against war-related damages, aiming to cover 40-50% of losses caused by Russian attacks. Prime Minister Serhiy Koretsky announced this plan during the YES-2026 forum, emphasizing the need for streamlined procedures and rapid responses to challenges arising from ongoing military actions.
By early September 2026, the estimated loss in tax revenues due to attacks on businesses reached around 70 billion hryvnias. In response, authorities are reviewing properties owned by the State Property Fund, state enterprises, and ministries to potentially open them for business use. Additionally, plans include decentralizing logistics, modeled after the energy sector, and establishing agreements with neighboring countries to enable flexible and swift border crossings.
Legislative Measures and Financial Strategy
The government is fast-tracking 42 legislative documents essential for securing $29.5 billion in international funding for 2026. All necessary bills are scheduled for submission to the Verkhovna Rada in September, with a target approval date of October 15, 2026. As of the announcement, 27 bills have already been registered and await passage.
Furthermore, the Armed Forces require an additional $27 billion. To cover this funding gap, the government plans to:
- accelerate the Ukraine Support Loan program,
- utilize frozen Russian assets,
- secure extra loans from non-EU partners,
- optimize internal budget expenditures.
“We pledged to finalize these decisions by November 1, but understanding the complexity, we will accelerate efforts and complete them by October 15.”
Serhiy Koretsky
In coordination with the National Security and Defense Council, and under the President’s directive, the government is taking steps to ensure uninterrupted supply of food, medicine, and other essential goods to the population. Koretsky highlighted the critical importance of protecting energy infrastructure and preparedness for potential attacks:
“Lessons from last winter have been learned—we are significantly better prepared for attacks than a year ago. We have contingency plans A, B, and C, including scenarios for the worst-case. There is no alternative to getting through this winter with dignity.”
Serhiy Koretsky
These statements reflect the government's committed efforts to mitigate war-related damage and adapt economic policies to wartime conditions. International financial aid combined with internal budget reforms are vital to maintaining stability amid conflict. The timely approval of key legislation and the implementation of decentralization strategies are expected to enhance Ukraine’s capacity to manage economic challenges and safeguard national security.
For international observers, these measures underscore Ukraine’s proactive approach in dealing with the ongoing conflict’s economic and infrastructural impacts, highlighting the critical role of both domestic reforms and global support.
As the Ukrainian government takes decisive steps to bolster its financial resilience against war-related disruptions, it is also gearing up for the upcoming winter challenges. For more details on the government's comprehensive approach to war risk insurance and its implications for energy security, read about how Ukraine is preparing for the winter season.