Ukraine to boost 2025 Defense Budget with record funding for weapons production
Ukraine is set to inject more than 55 billion hryvnias into weapon and military equipment production in 2025, surpassing next year's budget allocation, announced Herman Smetanin, Minister of Strategic Industries.
Of the total, a hefty 54.55 billion hryvnias ($1.34 billion) will be dedicated to advancing production capabilities, integrating cutting-edge technologies, and boosting the capacity of defense enterprises.
Compared to the 2024 budget, which stood at approximately 51 billion ($1.23 billion), this figure shows an increase of 3.5 billion ($84 million).
In addition to these allocations, the Ukrainian government will also earmark 500 million hryvnias ($12 million) to back a program for affordable loans aimed at defense enterprises.
This initiative enables manufacturers to secure loans at a 5% annual interest rate, with the government subsidizing the remainder of the interest rate.
This move comes shortly after the Ukrainian Cabinet approved the draft state budget for 2025, which is now set for a second reading in the Verkhovna Rada.