The Cabinet of Ministers has allocated 10.8 billion hryvnias to the front line and the Ukrainian defence industry

Katerina Melnychenko
Katerina Melnychenko Deputy Editor-in-Chief
The Cabinet of Ministers has allocated 10.8 billion hryvnias to the front line and the Ukrainian defence industry
The sum was raised through personal income tax, as well as licence fees from the gambling industry and lotteries.
The Cabinet of Ministers has allocated an additional 10.84 billion hryvnias to support the Armed Forces and develop Ukraine’s defence industry. The bulk of the funds will be used to procure, modernise and repair weapons and military equipment.

The Ministry of Defence of Ukraine has announced the government’s decision.

The Cabinet of Ministers of Ukraine has decided to allocate an additional 10.84 billion hryvnias to strengthen the country’s defence capabilities.

This refers to the remaining funds from the state budget’s special fund. This money will now be directed towards the needs of the army and the development of domestic defence production.

The funding has been allocated to two key areas.

Weapons, equipment and repairs

The largest portion of the funds – 9.05 billion hryvnias – will go directly to the needs of the front line.

The plan is to use this money to purchase new weapons and to modernise and repair military equipment.

For the average reader, this means: the funds are not to be spent on general programmes, but on specific items needed by the military – equipment, its upgrading and restoration to working order.

For the development of the Ukrainian defence industry

A further 1.79 billion hryvnias will be allocated to the Ukrainian defence industry.

This funding is to be used to introduce the latest technologies, expand the capacity of defence factories and reform the sector.

In other words, part of the money will go not only towards current purchases for the front line, but also towards strengthening Ukrainian production of weapons and military equipment.

Where the funds came from

The sum was accumulated through personal income tax, as well as licence fees from the gambling industry and lotteries.

The funds were accumulated under a special programme established in 2025 after the Ministry of Defence took over the functions of the defunct Ministry of Strategic Industries.

Why this is important for the front line

This allocation is intended both to meet some of the Defence Forces’ immediate needs and to support the long-term development of Ukraine’s defence industry.

Separately, the Ministry of Defence is launching the “Logistical Lockdown” programme. Its aim is to scale up middle-strike capabilities and systematically destroy Russian logistics, depots, equipment, command posts and supply routes at operational depth.

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