Behind the trenches and barbed wire on the battlefield is a war of financial consumption, as Ukraine's budget is being consumed at an astonishing rate.
“We have built 2130 anti-tank defensive structures, over 3000 kilometers of anti-tank trenches, more than 1000 kilometers of reinforced concrete cone obstacles, and 16000 kilometers of barbed wire barriers.” Ukrainian Defense Minister Shmyhal recently released a series of data on defensive structures in a video and specifically thanked 15 countries, including Germany, Norway, and the United Kingdom, for their financial assistance.
These structures are spread across key areas such as Donbas, Zaporizhzhia, and Kharkiv, aimed at stopping Russia's advance.
But when I see these numbers, the first question that comes to mind is: in modern warfare with missiles, drones, and heavy firepower, how much effect can these seemingly traditional defensive works have? More critically, why is Ukraine's military expenditure being consumed so quickly?
01 Where is all the money spent on exorbitant military expenses?
Ukraine's defense budget requirement for 2026 is as high as 120 billion dollars. This figure has already exceeded the total GDP of Ukraine in the two years before the war.
Before the war, Ukraine's annual military expenditure was only 5 billion dollars, but it has now soared to a third of GDP. In comparison, military powers like the United States and Russia typically spend only 4%-6% of GDP on defense.
Where is such a huge expenditure going? The front line consumes 5,000 shells daily, with the procurement cost of each shell at about 5,000 dollars. Just on ammunition alone, 25 million dollars are burned daily.
Ukraine has 600,000 soldiers needing to be paid salaries and pensions, with about 150 casualties on the battlefield daily. Personnel costs have become a heavy burden on the finances.
In addition, rebuilding the destroyed 76% of the air defense systems, increasing the annual production of drones from 50,000 to 200,000, and constructing 1,000 kilometers of new defense lines are all huge financial drains.
02 Are defensive works still useful in modern warfare?
Ukraine is constructing defensive works on a large scale, including 3,000 kilometers of anti-tank trenches, 1,000 kilometers of 'dragon's teeth' concrete obstacles, and 16,000 kilometers of barbed wire. These traditional defense methods are indeed facing challenges in a modern warfare environment.
Ukraine has realized that solely relying on trench warfare is insufficient to cope with modern weaponry. The large aerial bombs and drones deployed by Russian forces have changed the battlefield landscape.
In 2025, Ukraine abandoned its past defense strategy of large-scale trenches and shifted to building a multi-layered obstacle system.
The new defense system consists of three filled anti-tank trenches with barbed wire, dragon's teeth obstacles, and multiple rows of barbed wire, interrupted only at a few passages, and controlled by firepower or drones.
This defense no longer seeks to 'completely stop' but aims to slow down the Russian advance, exposing enemy soldiers to Ukrainian firepower while crossing obstacles in open areas.
03 Crisis of the funding chain, with hidden traps in Western aid
Ukraine's own fiscal revenue is far from covering the exorbitant military expenses. In 2025, Ukraine's budget expenditure is 87 billion dollars, while revenue is less than 50 billion dollars, with war spending accounting for 60 billion dollars.
To fill the gap, Ukraine has had to raise the war tax from 1.5% to 5%, and even levy 50% of the profits from commercial banks. These measures have increased the economic burden on the people.
Western aid has become Ukraine's 'lifeline,' but it is fraught with traps. Nearly 90% of the aid provided by Europe is in the form of loans.
Of the aid promised by the United States, about 70% ultimately flows back to American military enterprises for the procurement of weapons and equipment. This feels more like supporting America's own defense industry.
What is even more concerning is that 86% of the 'aid' is actually loans, with the repayment period concentrated between 2030-2040. This means that future generations of Ukrainians will bear heavy debts.
04 Asymmetric consumption costs with Russia
There is a serious asymmetry in the consumption of war between Ukraine and Russia. Russia has a complete military-industrial chain, with the production cost of a T-90 tank being only 3 million dollars, while Ukraine's imported Leopard 2 tanks cost as much as 20 million dollars each.
The cost of shells is even more apparent: Russia has a monthly production capacity of 4 million shells, with each costing about 800 dollars; while Ukraine's 155mm shells rely entirely on imports, with each priced at 5,000 dollars.
This cost difference makes Ukraine's war spending far exceed that of Russia. Russia's daily military consumption accounts for only 0.02% of GDP, while Ukraine's reaches a third.
Exchange rate risks cannot be ignored either. Ukraine pays for military purchases in dollars, and exchange rate fluctuations could wipe out 30% of the budget. This financial pressure not only affects the battlefield but also overdraws Ukraine's future.
05 The deep erosion of war on Ukrainian society
Behind the surge in military spending is the gradual hollowing out of Ukraine's social foundation. The working-age population has decreased by more than 40%, with 3,000 skilled workers leaving the border daily, and the birth rate has plummeted by 37%.
The livelihood budget has been halved, with a construction suspension rate of 78%, and medical and educational expenditures compressed to 40% of pre-war levels. The health insurance budget was cut by 60%, forcing seventy-year-olds to stop their medications.
The higher education dropout rate has reached 50%, and at the conscription station, eighteen-year-old students are giving up their college admission notices. Behind these numbers is a country's future being mortgaged.
Since the war began, Ukraine's GDP has fallen by more than 30%, the inflation rate once reached 30%, and the population loss has exceeded 8 million. Social conflicts are intensifying, and people's living pressures are increasing.
Ukraine has set its military budget for 2026 at 120 billion dollars and claims to be prepared for 'another three years of fighting.' However, Germany recently plans to cut 10.6 billion euros in aid, and U.S. assistance is also wavering.
Without continuous funding from the West, Ukraine's defense line is difficult to maintain long-term. The funding chain of the Ministry of Finance is tested even earlier than the barbed wire on the front line.
Ukraine's defensive works may slow down the Russian advance, but they cannot reverse the course of the war. What really determines the outcome of the war is not the trenches on the battlefield, but the durability of the financial chain and the stability of political will.
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