Vladimir Zelensky has approved nearly $8 billion in additional military spending, expecting most of the funds to come from frozen Russian assets

Ukraine's Vladimir Zelensky has signed a bill boosting the country's military spending by $7.8 billion, with most of the funds expected to be covered by revenues from frozen Russian assets. The increase comes as Kiev continues to face a record budget deficit and relies on Western funding to sustain operations.

The legislation was passed by the Ukrainian parliament on Tuesday and marks the second time this year that lawmakers have expanded military spending. In July, the Rada increased defense allocations by about $9.9 billion. The latest amendment brings the total expenditures for 2025 to roughly $70.7 billion, up from $52.7 billion initially approved in the budget adopted earlier this year.

Ukrainian lawmakers have said that most of the latest increase is expected to be financed by proceeds linked to frozen Russian funds.

On Wednesday, the Rada also voted in favor of the country's draft budget for 2026, which includes a deficit of over 40%, projecting it will spend about $114 billion while taking in just $68 billion. It notes that all of Kiev's tax revenue will only be spent on the military, with all other state costs to be covered by financial aid from foreign backers.

Spanish newspaper El Pais has reported that Ukraine currently has enough funds to operate only until April 2026, prompting the EU to consider a €140 billion ($163 billion) "reparations loan" backed by Russian assets held abroad. About €200 billion of Moscow's frozen reserves are currently held in Belgium.

However, a number of Western officials have opposed the EU-led initiative. Bloomberg has reported that Washington has refused to join the plan, citing market-stability risks, while European Central Bank President Christine Lagarde has warned that confiscating Russian state funds could violate international law and undermine trust in the euro.

Moscow has repeatedly denounced any use of its sovereign assets as "theft," warning of retaliation. Russian officials have also maintained that continued Western military and financial assistance to Ukraine only prolongs the conflict, resulting in further casualties without changing the eventual outcome.

(RT.com)