Ukraine to allocate additional US$7.8bn for defence, PM says

The Cabinet of Ministers (Ukrainian government) has approved amendments to the 2025 state budget, under which Ukraine will allocate an additional UAH 324.7 billion (about US$7.8 billion) for defence by the end of the year.

Source: Ukraine's Prime Minister Yuliia Svyrydenko on Telegram

Details: Svyrydenko specified that over UAH 310 billion (about US$7.5 billion) will go to the general fund, including more than UAH 301 billion (about US$7.2 billion) for the Ministry of Defence.

This includes UAH 202 billion (about US$4.8 billion) for military personnel payments, UAH 100 billion (about US$2.4 billion) for weapons procurement – primarily drones of all types, including fibre-optic FPV drones, interceptor drones and deep-strike drones – and UAH 8 billion (about US$193.5 million) for other military expenditures such as logistics, fuel and operational costs.

According to Svyrydenko, the decision was driven by developments on the front line and the constantly changing conditions on the battlefield.

Quote: "Russia does not intend to stop, it is changing its tactics on the front and intensifying attacks on our energy infrastructure in the rear. We must remain flexible and quickly adjust our spending to provide the Armed Forces with all the necessary tools and resources to counter the enemy."

Details: Svyrydenko added that the main source of funding for the increased expenditures is €6 billion from the European Union as part of the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative. In addition, the government has nearly UAH 30 billion (about US$725.9 million) in extra budget revenues, savings on debt servicing, and reductions in non-priority spending.

Quote: "Thus, the purchase of drones will be financed with frozen Russian assets. We are grateful to our partners from the EU and the G7 countries for this. The next step now lies with the members of parliament. We hope for prompt approval of the budget amendments in the Verkhovna Rada [Ukrainian parliament] to ensure continued support for Ukraine's defence forces."

Background: The Cabinet of Ministers has already approved a draft law proposing to increase total spending in 2025 by UAH 317 billion (about US$7.6 billion), and these funds will be directed to the security and defence sector.

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