Ukraine is preparing for a significant increase in military production in 2025 by allocating a record defence budget. Prime Minister Denys Shmyhal said that spending on arms and military equipment will amount to at least UAH 739 billion. The total defence and security budget will reach UAH 2.23 trillion.
Key plans in the defence sector
- Production of cruise missiles and drone missiles:
- In 2025, Ukrainian enterprises are to produce at least 3,000 such missiles.
- A special emphasis is placed on long-range drones, with plans to produce 30,000 units.
- Development of the military-industrial complex (MIC):
- The company plans to increase its production capacity to $30 billion.
- Launching long-term contracts with arms manufacturers for 3-5 years as part of the Weapons of Victory project.
- International cooperation:
- Implementation of the “Danish model”, according to which international partners will buy Ukrainian weapons for the needs of the Armed Forces.
- The programme is expected to raise more than $1 billion in 2025.
Special attention to the missile programme
Shmyhal emphasised the importance of developing the long-range component, which is a priority set by the President of Ukraine. The missile programme includes both the modernisation of existing technologies and the development of new weapons systems that will strengthen the country’s defence capabilities.
Strategic approach to financing
Ukraine seeks to ensure stability in arms production through long-term contracts. This approach will contribute to the predictability and investment attractiveness of the defence sector.
The year 2025 promises to be a turning point for the Ukrainian defence sector. With record budgetary spending, large-scale production of drones and missiles, and cooperation with international partners, Ukraine is strengthening its position in the defence industry and enhancing its ability to defend its territorial integrity.
