Ukraine to spend over UAH 55 billion on arms production next year

The draft budget for 2025, which the Government has prepared for the second reading, includes more than UAH 55 billion for the production of weapons and military equipment alone.

Here's What We Know

Minister of Strategic Industries Herman Smetanin said that the budget for the development of the defence industry for the next year will be increased compared to 2024, when about UAH 51 billion was allocated for this purpose.

The additional funds will be used to improve production, develop and introduce new technologies, and expand production capacity for defence products.

In addition, UAH 500 million is planned to be allocated in 2025 for a programme of affordable loans for Ukrainian defence companies. This initiative, launched this year, allows manufacturers to take out loans at 5% per annum, with the remaining interest being reimbursed from the state budget.

The government hopes that this programme will help Ukrainian enterprises increase their arms production and speed up the delivery of weapons to the Defence Forces.

Source: German Smetanin