Canadian Prime Minister Mark Carney and Turkish President Recep Tayyip Erdoğan announced the launch of a bilateral strategic partnership aimed at developing cooperation in the energy, defense, and economic sectors.
“Today, President Erdoğan and I launched the new Canada-Turkey Strategic Partnership to create significant new opportunities for our peoples,” Carney wrote on social media platform X on Thursday.
According to him, the cooperation will cover the energy sector, the extractive industries, climate initiatives, as well as security and defense issues. “We are deepening our ties to counter common threats and open new markets for our workers and businesses. This is an ambitious partnership for a safer and more prosperous future,” the Canadian prime minister emphasized.
Ukraine has close trade and economic ties with both countries: the Canada-Ukraine Free Trade Agreement (CUFTA) has been in effect since 2017 (with subsequent updates), while the free trade agreement with Turkey officially entered into force in 2026, significantly expanding access for Ukrainian goods to the markets of both strategic partners.
The Ukrainian Ministry of Defense estimates that defense spending will rise to $175 billion in 2027 from $155 billion in 2026; the government’s draft state budget currently allocates $100 billion, First Deputy Minister of Finance Roman Yermolichev said during a budget discussion organized by the Center for Economic Strategy that week.
“There is a need for $70 billion. And here, various instruments must be utilized, including cooperation with international partners, not only to attract funding but also to use various instruments that have been in place for the past four years: ‘Ramstein,’ PURL, and all other mechanisms related to the procurement of military equipment,” the First Deputy Minister noted.
He emphasized that when planning defense expenditures in the 2027 draft state budget, the Ministry of Finance significantly changed its approach compared to previous years, when initial allocations were set below actual needs.
“We have now changed this situation and increased funding for the defense sector immediately: funding has been increased by 518 billion hryvnia—that is, from 4.4 trillion to 4.9 trillion hryvnia next year,” said Yermolichev.
The First Deputy Minister explained that the 2026 state budget does not currently include an additional 300 billion hryvnias for the payment of military pay—which was increased as of July 1—and defense-related social benefits, which will be financed from domestic sources, but this 300 billion UAH has already been included in the 518 billion UAH increase in defense spending in the draft 2027 state budget.
At the same time, he clarified that the calculations were made without taking into account the factor of an increase in military personnel, which is difficult to predict.
“Therefore, we hope that by the beginning of the year, we will be in a more or less stable position. Additionally, we have increased the allocation to the Reserve Fund under the Ministry of Finance: this year, we allocated approximately 140 billion hryvnias from the General Fund, whereas for next year, we have already allocated 200 billion hryvnias from the General Fund,” Yermolichev concluded.
As previously reported, the funding shortfall for the Ministry of Defense’s stated $155 billion war requirement for 2026 was, until recently, estimated at $27 billion, but Prime Minister Serhiy Koretsky and the Ministry of Finance stated that $7 billion—or about 300 billion hryvnias—of this amount has been secured through domestic resources, specifically the Ministry of Finance’s Reserve Fund.
As for next year, according to the agency “Interfax-Ukraine,” out of the $70–75 billion in war-related expenditures not covered by the state budget, sources of funding have been identified for approximately $20 billion, while the remainder still needs to be secured.
DEFENSE, FUNDING, Ministry of Defense, STATE BUDGET, UKRAINE
Direct funding for security and defense in Ukraine’s draft 2027 state budget amounts to approximately UAH 4.855 trillion, or 66.8% of all planned expenditures, reports the Experts Club information and analytical center.
Including UAH 30 billion in state guarantees, the government declares a total defense resource of UAH 4.885 trillion. Compared with the 2026 plan, this represents an increase of approximately UAH 517.8 billion, or 11.9%.
Most of the increase is allocated to military pay and salaries with related charges, which rise from UAH 1.454 trillion to UAH 1.792 trillion. Meanwhile, the comparable allocation for weapons and military equipment in the Finance Ministry’s presentation remains virtually unchanged at UAH 2.299 trillion, compared with UAH 2.297 trillion in 2026.
Civilian sectors will also receive nominal funding increases. Social spending rises to UAH 540.3 billion, education to UAH 328.5 billion, and healthcare to UAH 292.5 billion. However, part of these increases will be absorbed by projected average annual inflation of 8.6%.
The draft budget also relies on several tax measures that still require legislative approval. In particular, the calculations include an increase in the standard VAT rate from 20% to 21%, expected to generate an additional UAH 58.7 billion. Four proposed tax measures together are expected to raise UAH 117.3 billion.
The macroeconomic forecast assumes real GDP growth of 1.3% in 2027, average annual inflation of 8.6%, and an average exchange rate of UAH 47.1 per US dollar, compared with an expected UAH 44.4 in 2026. The year-end 2027 exchange rate is projected at UAH 48.3 per dollar.
Italian Foreign Minister Antonio Tajani confirmed that a new aid package for Ukraine is being prepared, as well as the continuation of the Italian government’s commitments regarding Ukraine’s security, recovery, and defense.
According to the website of the Italian Ministry of Foreign Affairs and International Cooperation, Tajani made these remarks during a phone call with Ukrainian Foreign Minister Andriy Sybiga on the occasion of the 35th anniversary of Ukraine’s restoration of independence.
During the conversation, Tajani condemned the ongoing Russian attacks on Ukrainian territory and reaffirmed the Italian government’s full support for the Ukrainian people.
“The minister reaffirmed the government’s commitment to maintaining maximum pressure on Moscow, as demonstrated by Prime Minister Giorgia Meloni’s participation today in the Coalition of the Willing. Tajani confirmed that the government’s commitment to Ukraine’s security, reconstruction, and defense remains firm, in particular thanks to a new Italian aid package currently being prepared, as well as support through EU sanctions,” the statement reads.
Separately, the parties discussed food security and maritime safety. Tajani emphasized the importance of the Black Sea and the entire Mediterranean for global food security and ensuring the continuity of Ukrainian grain exports.
He reaffirmed Italy’s readiness to cooperate with Kyiv, in particular by exploring avenues for collaboration with MED9+ initiatives regarding the Strait of Hormuz, underscoring the interconnection between maritime security, economic stability, energy flows, and food security.
The conversation also touched on Ukraine’s recovery. According to the Italian Ministry of Foreign Affairs, Italy has already allocated approximately 3.2 billion euros to support Ukraine’s recovery and reconstruction, in part through contributions from Italian companies.
According to The Guardian, the United Kingdom will gain access to Ukrainian battlefield data to train artificial intelligence systems that are planned to be used to protect military facilities and critical infrastructure from sabotage, drones, and other threats.
Ukraine and the UK signed a partnership agreement on artificial intelligence on August 24, 2026. The UK will become the first foreign partner to gain access to the Ukrainian platform Avengers AI Labs, the British government reported.
Avengers AI Labs aggregates a vast amount of real-world data collected by thousands of daytime cameras and infrared sensors on the battlefield. The system contains data on millions of objects, including tanks, artillery, air defense systems, personnel, and aerial targets—such as Shahed strike drones and reconnaissance drones. This data is used to train artificial intelligence models.
According to The Guardian, one of the first British pilot projects will be a system to protect a military facility using underground fiber-optic cables, which, with the help of AI, will be able to recognize characteristic movements of people and vehicles. In the future, such technologies could be applied at airports, railways, energy facilities, and prisons.
Three British technology companies—Sintela, Mind Foundry, and Skyral—have already been involved in the pilot projects. In particular, Sintela specializes in using fiber-optic networks as distributed sensors.
Another area of cooperation will be the development of a new generation of energy-efficient AI chips for drones, robotics, and autonomous systems. It is expected that such solutions will allow these systems to operate autonomously for longer periods and respond more quickly in challenging conditions.
The agreement calls for collaboration among governments, businesses, universities, and research centers in both countries. Ukraine provides unique data and experience in applying technologies under real combat conditions, while the United Kingdom contributes its research infrastructure, universities, and technology companies.
British Prime Minister Andy Burnham stated that combining Ukraine’s combat experience with British expertise in AI will accelerate the development of technologies for both Ukraine’s defense and the protection of critical British infrastructure.
The partnership is part of a 100-year agreement between Ukraine and the United Kingdom. The joint declaration calls for the development of AI models, secure data-sharing mechanisms, autonomous systems, cybersecurity technologies, and solutions for the defense industry.
artificial intelligence, DEFENSE, INFRASTRUCTURE, UKRAINE, UNITED KINGDOM
The Norwegian government will propose to the Storting (parliament) to extend emergency aid to Ukraine in the amount of 85 billion Norwegian kroner (approximately $9.1 billion) into 2027 as well, the government’s press service reported.
“Norway will continue to support Ukraine’s defense efforts. Ukraine is facing a difficult winter. We are now sending a clear signal that Norway will continue to support Ukraine, both through civilian and military aid,” said Prime Minister Jonas Gar Støre.
As noted, the government’s proposal was conveyed to Ukrainian President Volodymyr Zelenskyy during a meeting between Stere and Zelenskyy in Kyiv on Sunday.
The Norwegian prime minister noted that supporting and rebuilding Ukraine is also important for European security. Norwegian support is provided through the Nansen Program for Ukraine and is directed toward both civilian and military purposes.
“The bulk of the funds will go toward military support, specifically purchases from the Ukrainian defense industry. The government will revisit the distinction between military and civilian services at a later date,” the press release states.
The Nansen Program for Ukraine is Norway’s long-term government program to support Ukraine, launched in February 2023 with broad cross-party support from the Norwegian parliament—the Storting. It initially allocated 75 billion NOK for 2023–2027, but the program was subsequently expanded and extended through 2030.
