Ukraine’s government ramps up spending for domestic defence production

Of this allocation, UAH 7.6 billion (around EUR 195 million) will be drawn from the general fund, while the remaining funds will come from a special fund. This marks an increase from the 2024 budget, which allocated just over UAH 51 billion (approximately EUR 1.3 billion) for defence production.

An additional UAH 500 million (about EUR 13 million) has been designated for a financial support programme for the defence industry, offering low-interest loans to key defence manufacturers. Developed by the Ministry of Strategic Industries, this programme aims to support both state and private enterprises crucial to Ukraine’s defence and economic resilience.

Under this scheme, defence producers will benefit from a 5% interest rate, with the government covering the remaining interest. For comparison, UAH 263.4 million (approximately EUR 7 million) was allocated to this financial support initiative in the 2024 budget, reflecting the increased emphasis on bolstering the defence sector amid ongoing security concerns.

Source: Ministry of Strategic Industries of Ukraine.