Ukraine Approves $97B Defense Budget Amid Escalated Attacks

Ukrainian lawmakers approved a record $97.2 billion defense budget for 2026 on June 10, allocating an additional $34.7 billion to bolster the country's military efforts against Russian aggression. The bill was passed by 242 lawmakers, exceeding the required majority of 226 votes.

The increased funding became possible after a €90 billion European Union loan backed by frozen Russian assets was unlocked, according to Reuters. This significant rise in defense spending is set to bolster Ukraine's military capabilities amid ongoing conflict with Russia.

Meanwhile, Ukrainian forces struck several key facilities at the Russian-occupied port of Mariupol on June 10. According to Sky News and Al Jazeera, the strikes were carried out by Ukraine's drone forces, targeting structures used for military logistics and the illegal export of Ukrainian grain, coal, and metal. The attacks significantly limited Russia's ability to use Mariupol as a logistics hub.

Ukrainian drones also hit a historic museum in Sevastopol in Russia-annexed Crimea on June 10. According to Reuters, Sevastopol's Russian-installed governor Mikhail Razvozhayev announced the damage on Telegram early Wednesday. The strikes disrupted fuel distribution plans due to damaged supply routes.

Ukrainian state energy firm Naftogaz reached a preliminary agreement to restructure two Eurobond tranches worth €1.2 billion ($1.38 billion) due this year and in 2028, extending the payment dates to January 2032 and January 2033.

Ukrainian forces have recaptured more than 600 square kilometers of territory so far this year. Oleksandr Syrskyi, Ukraine's top military commander, made the statement on Monday. In May alone, Ukraine recaptured 100 square kilometers more of territory than it lost.

The Ukrainian campaign against supply lines to Crimea has intensified, with fuel stations in Sevastopol and Yevpatoriya running dry following recent drone strikes. According to Reuters witnesses, most petrol stations in Sevastopol had no fuel available, and long queues formed at the single working station in Yevpatoriya.

Local authorities have imposed fuel rationing regimes due to disrupted supply lines. The Moscow-installed governor of Sevastopol reported that Ukrainian drones caused light damage overnight, with 33 downed. Additionally, Ukraine targeted bridges in the Kherson region, causing some damage. Overnight strikes also hit southern Russia, including a fire at the Afipsky oil refinery and damage to civilian infrastructure in Adygea.

The Kremlin on Thursday shrugged off the prospect of new European Union sanctions against its banks, saying they had already been operating under sanctions for a long time and this had not stopped them from making a profit. According to Reuters, Kremlin spokesman Dmitry Peskov told journalists that 'Our largest banks have long been under sanctions. This does not prevent the banks from earning large profits, developing, maintaining absolute stability.'

Russia's seaborne oil product exports fell by 0.2% on a daily basis in May from April to 8.016 million metric tons, according to industry sources and Reuters calculations.