President Volodymyr Zelenskyy has decided to allocate 300m hryvnyas in bonuses to servicemen instead of holding a parade on Independence Day celebrated on 24 August.
"Normally we would hold a military parade on Ukraine's Independence Day on 24 August, a rather pompous and certainly not cheap one. It seems to me that this year we should better allocate this money to our heroes instead of the parade," he said in a video address.
The bonuses will be paid to conscripts, cadets, sergeants, officers and servicemen in the Joint Forces Operation area in Donbas.
He said Independence Day celebrations are "not cancelled but change their format".
Last year Kyiv hosted a military parade called the "March of New Army" on Independence Day, featuring over 4,000 servicemen and around 250 items of military hardware.