Maintaining Ukrainian army over next 10 years could cost $700 bln – Ukrainian Dpty PM
Ensuring security and maintaining Ukraine’s army in its current composition over the next 10 years could cost up to $700 billion if Russia’s aggression continues, Deputy Prime Minister for European and Euro-Atlantic Integration Taras Kachka said.
Kachka said during the panel discussion "Ukraine: Futures’ Frontline" at the World Economic Forum in Davos if the situation does not change, that is, if Russia’s aggressive behavior toward Europe and the world continues. This could cost up to $700 billion over the next 10 years if Ukraine maintains its army that exists now, of the same size, and provide it with weapons.
As noted by Minister of Economy, Environment, and Agriculture Oleksiy Sobolev, the mentioned $700 billion represents off-budget defense expenditures. In addition, he said, more than $500 billion over the next decade will need to be allocated directly from Ukraine’s state budget for defense needs.
Sobolev emphasized that to achieve this, Ukraine will fight corruption, reduce the share of the shadow economy, and seek to collect more taxes.
Ukraine must develop the economy so that it can support security, which, in turn, will allow the economy to grow, Sobolev said, underscoring the interdependence of economic prosperity and defense capability.
Government representatives also added that, despite significant defense spending, Ukraine continues to implement reforms required for EU accession and is working on creating instruments to reduce risks for private investors.
