This year, a record budget of at least UAH 739 billion is envisaged for the programme of arms production and procurement. This was announced by Prime Minister Denys Shmyhal at a meeting of the Cabinet on 7 February.

According to him, the Government prioritises the purchase of Ukrainian weapons, invests in and supports the private sector.

“One of the key requests in this area from defence companies is the introduction of long-term contracts for the production of weapons and ammunition. The Ministry of Defence, the Ministry of Finance and the Ministry of Strategic Industries have been instructed to work on this issue,” the Head of Government said.

According to Denys Shmyhal, the first three-year contracts were signed last year, and in 2025, three-year and five-year contracts for arms and military equipment manufacturers should become the norm.

“This is one of the Government’s incentives that will allow manufacturers to increase investment in production and help Ukraine build the most powerful and modern defence industry in Europe,” the Prime Minister stressed.