Estonia donated the most significant percentage of its 2021 gross domestic product (GDP) to help Ukraine over the period between January 24, 2022, and February 28, 2025. Estonia contributed 2.34 percent of its GDP in bilateral aid, followed by Denmark with 2.32 percent of GDP. Besides the Nordic and Baltic countries, Poland donated the largest share of GDP. Western countries sent aid to Ukraine in view of the Russian invasion that began in February 2022. Who donated the most to Ukraine? In absolute terms, the largest bilateral aid allocations to Ukraine were made by the United States, at over 114 billion euros as of February 28, 2025. European Union (EU) institutions, such as the European Commission and the European Council, allocated the second-largest amount of assistance, at almost 52.1 billion euros. The United Kingdom (UK) was the fourth-leading source of bilateral aid. EU aid to Ukraine The EU has supported Ukraine with over 17 billion euros in financial assistance since 2014 as of January 2022. Of them, the largest share of aid has been provided as additional loans from the European Investment Bank (EIB) and the European Bank of Reconstruction and Development (EBRD). Among EU members, Germany allocated the largest amount of bilateral aid to Ukraine from January 24, 2022, at around 17 billion euros, while Estonia allocated the largest share of GDP.

The majority of demand for weapons and ammunition manufactured by European companies comes from the European defence sector and allied militaries like the US. Domestic and international defence budgets are the primary drivers of revenue, typically expanding during geopolitical tension and conflict. Yet, the industry faces intense global competition from US manufacturers, which produce the lion's share of ammunition and weapons globally. Imports have climbed strongly in recent years, totalling €2.6 billion in 2022, as the Russia-Ukraine conflict encouraged a flood of US weapons and ammunition imports to assist Ukraine with the war effort. Industry revenue is expected to swell at a compound annual rate of 1.5% over the five years through 2025, reaching €25.6 billion in the current year, with an anticipated revenue jump of 0.6%. Industry revenue has expanded in times of rising geopolitical tensions and conflict in Europe, dragging European defence spending to historical highs. Soaring inflation in 2023 lowered European manufacturers' competitive advantage relative to the US and weighed on revenue growth. European weapon spending is poised to significantly shape weapon manufacturers' revenue growth in 2025, largely due to the ongoing geopolitical climate, particularly the Russia-Ukraine war and a renewed commitment to defence across the continent. Rising R&D investments lead to cutting-edge weapons with few or no competitors, directly boosting profitability. Over the five years through 2030, industry revenue is expected to soar at a compound annual rate of 4.9% to reach €32.5 billion. The Russia-Ukraine conflict has led to more government spending pledges, sustaining orders for defence contractors. Countries like Germany, Poland and the UK have made substantial commitments, with Germany committing over €72 billion in 2025 and Poland aiming for 4% of GDP on defence, fuelling revenue growth. NATO's new aspirational target of 5% of GDP by 2035 (with 3.5% for core defence requirements) indicates an upward trend in revenue growth over the long term.