Debts owed by foreign entities to the Ministry of Defense of Ukraine have reached 472.6 billion hryvnia, according to an analysis of fiscal risks in the 2027 budget prepared by the Ministry of Finance. Of this amount, 75.7 billion hryvnia is past due, and given the shortage of funds for legal services, Ukraine may lose the opportunity to recover part of the debt.
The lack of funding for international disputes complicates the process of enforcing asset recovery, the Ministry of Finance noted. Such situations can lead to the expiration of statutes of limitations, particularly at the Swiss Arbitration Center, which makes it more difficult to protect Ukraine’s interests.
If legal services are not procured in a timely manner, the state risks losing more than $232.1 million, 155.7 million euros, 51,647 Swiss francs, and 535,189 UAH. The Ministry’s estimates indicate that the funding shortfall for legal services in 62 cases in 2026 could amount to approximately 1 million UAH.
Furthermore, a lack of funding could lead to the suspension of cooperation with legal advisors abroad and negatively impact Ukraine’s reputation, making it more difficult to attract funding in the future. Changing contractors will require additional time and resources.
The Ministry of Defense’s overdue accounts receivable are growing every year, gradually reaching new highs. As of January 1, 2024, the debt stood at 39.6 billion hryvnias, and as of January 1, 2025, it was 45 billion hryvnias, showing an upward trend.
