Poland to Sign $4 Billion U.S. Loan Deal to Boost Military Power Due to Russia Threat, Spend 4.7% of its GDP on Defense

To strengthen its military capabilities, Poland will sign a $4 billion loan guarantee agreement with the United States on July 25, aimed at modernising its armed forces. The announcement came from Poland’s Ministry of National Defence, highlighting the country’s commitment to enhancing national security at a time when regional tensions are at their highest in decades.

This loan is part of a broader effort by Poland to upgrade its defence systems and reinforce NATO’s eastern flank, especially since Russia’s full-scale invasion of Ukraine in 2022. The U.S. has already provided over $11 billion in loans and guarantees to Poland since the war began, helping the country buy advanced systems like the Patriot missile defence system, HIMARS rocket launchers, and Apache attack helicopters.

But this latest deal isn’t just about buying equipment—it’s also a reflection of Poland’s changing mindset. The war in neighbouring Ukraine has shaken Poland to its core, leading to a deep sense of urgency about military readiness and national defence.

After years of keeping defence spending relatively moderate, Poland has now emerged as the NATO country spending the highest share of its economy on defence. In 2025, Warsaw plans to spend 4.7% of its Gross Domestic Product (GDP) on the military—a staggering increase compared to earlier years. And this number is expected to climb even higher, with projections reaching 5% of GDP in 2026.

To put this shift into perspective: before the Ukraine war, Poland’s defence spending hovered closer to 2% of GDP, which was roughly in line with NATO recommendations but not extraordinary. The Russian invasion, however, changed everything. Fear of aggression spreading westward has turned Poland into one of Europe’s fastest-growing military powers.

In just a few years, Poland has massively ramped up its military procurement, ordering hundreds of tanks, fighter jets, and artillery systems, not just from the U.S. but also from South Korea and European manufacturers. The country is not only investing in hardware but also building new infrastructure and increasing troop numbers.

The new $4 billion U.S. loan guarantee is another brick in that wall of defence—one that Poland hopes will keep it secure in a region where peace can no longer be taken for granted.