Ukraine plans to spend over UAH 55 billion on weapons production in 2025
12 November, 2024 120mm mortar rounds manufactured by Ukrainian Armor company. Photo credits: Militarnyi The draft State Budget for 2025, which the Government has prepared for the second reading, allocates more than UAH 55 billion for producing weapons and military equipment.
Herman Smetanin, Minister of Strategic Industries, announced this. He noted that this is more than was allocated for the current year. These funds will be used to develop production and develop and implement new technologies.
It will also be used to increase production capacity for defense products.
BTR-4E in service with the 56th Brigade of the Armed Forces, June 2024. Photo credits: 56th Brigade
"This is more than what was allocated for 2024 - about UAH 51 billion," the Minister noted.
In addition, UAH 500 million is planned to be allocated for a program of affordable loans for Ukrainian defense companies. This program was created this year, allowing producers to take out loans at 5% annually. The state budget will cover the rest of the interest.
The government expects that domestic enterprises will be able to produce more weapons and deliver them to the Defense Forces faster.
Bohdana howitzer. November 2024. Photo credits: 44th Artillery Brigade of the Armed Forces of Ukraine
The Ministry of Strategic Industries of Ukraine has developed a preferential lending program for defense companies.
It will be available to enterprises that the Ministry of Strategic Industries has already identified as critical to the functioning of the economy during the special period. The draft state budget will now be submitted to the Verkhovna Rada to be prepared for consideration by the Committee and then for voting.
In an interview with Militarnyi, Hanna Hvozdiar, Deputy Minister for Strategic Industries, also said that Ukraine plans to launch a digital components library for Ukrainian arms manufacturers.
In particular, manufacturers will be able to provide feedback to suppliers, who will understand what is needed to improve components.
In addition, the library will provide an opportunity for self-registration to demonstrate their parts.