Ensuring the security and maintenance of the army in Ukraine’s current composition over the next 10 years could cost up to $700 billion if Russia’s aggression continues, said Taras Kachka, Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine.
“If the situation does not change, that is, if Russia’s aggressive behavior towards Europe and the world continues, it could cost up to $700 billion over the next 10 years to maintain the Ukrainian army in its current size and provide it with military personnel,” Kachka said during a panel discussion entitled “Ukraine: On the Front Lines of the Future” at the World Economic Forum in Davos.
As noted by the head of the Ministry of Economy, Ecology and Agriculture, Alexei Sobolev, the $700 billion mentioned is off-budget defense spending. In addition, according to him, more than $500 billion over the next decade should be allocated directly from Ukraine’s state budget for defense needs.
Sobolev stressed that to this end, Ukraine will fight corruption, reduce the share of the shadow economy, and try to collect more taxes.
“We must develop the economy so that it can support security, which, in turn, will allow the economy to grow,” Sobolev said, emphasizing the interdependence of economic prosperity and defense capabilities.
Government representatives also added that, despite significant defense spending, Ukraine continues to implement the reforms necessary for EU accession and is working to create tools to reduce risks for private investors.
