Ukraine says foreign defense suppliers owe country about $10.58 billion, including $1.7 billion already paid for goods delivered late or never at all

Foreign defense suppliers owe Ukraine approximately $10.58 billion, according to Ukraine’s Ministry of Finance. Of this amount, approximately $1.70 billion represents overdue receivables or funds that the Ministry of Defense has already paid to suppliers but for which the corresponding goods or services were either delivered late or not delivered at all.

Ukraine is seeking to recover these funds through the courts. However, in several cases, the statute of limitations is approaching or has already expired, potentially preventing the state from recovering the money.

A $22,400 legal bill could put $403 million in recoverable funds at risk

The government needs approximately $22,400 in legal fees to continue these proceedings. Without this funding, Ukraine could lose more than $403 million, roughly 18,000 times the amount required for legal services.

“The lack of funding for international disputes deprives Ukraine of the ability to forcibly recover these assets,” the Ministry of Finance said.

Funding shortfall could jeopardize legal cases and future financing

The ministry warned that a lack of funding could deprive the state budget of significant revenues, potentially force Ukraine to terminate contracts with foreign legal advisers already representing it, and delay the appointment of new advisers. It could also negatively affect Ukraine’s standing and make it more difficult to secure financing in the future, Ekonomichna Pravda reports.

Supplier debts to Ukraine’s Defense Ministry rise amid growing funding needs

The Ministry of Defense’s overdue receivables have been growing year after year. As of 1 January 2024, they amounted to approximately $886 million, rising to approximately $1.01 billion as of 1 January 2025.

In this context, receivables are amounts owed to the Ministry of Defense by suppliers for goods not delivered or services not provided on time, even though the ministry has already paid for them.

The Ministry of Finance raised these issues amid a funding shortfall for Ukraine’s Defense Forces in 2026, which the president has put at approximately $27 billion.