The Ukrainian defense industry raised $1.5 billion in 2024. What the funds were spent on

27 January 16:49

As part of the ZBROYARI: Manufacturing Freedom initiative, the Ukrainian defense industry received more than $1.5 billion over the course of the year. The majority of the funds allocated fell on the last quarter of the year. This was reported by the Ministry of Strategic Industries, Komersant ukrainskyi reports.

ZBROYARI: Manufacturing Freedom is a global fundraising campaign that aims to raise $10 billion over the course of a year for the production of Ukrainian weapons.

Nine countries have already joined the initiative: Denmark, Canada, the Netherlands, Lithuania, the United Kingdom, Sweden, Norway, Iceland, the United States, and the European Union. The countries allocated either their own budget funds or interest from frozen Russian assets.

How and what exactly are the funds spent on

The allocated funding is used in several scenarios. According to the Ministry, last year the Danish model proved to be the most successful – when a partner country provides reimbursement to the customer under contracts already concluded between the Ministry of Defense and the contractor. Out of a total amount of more than a billion and a half dollars, more than $500 million was used under the Danish model.

For example, the pilot project financed the production of 18 Bohdan self-propelled artillery systems, which are already being used at the front. As President Volodymyr Zelenskyy stated at the opening of the Second International Defense Industries Forum last October, Ukraine is capable of producing 15-20 Bohdan self-propelled wheeled artillery systems per month.

In addition, in 2024, the production of long-range drones, artillery systems, ATGM systems, and missiles was funded under the Danish model.

What is the potential of the Ukrainian defense industry?

Ukraine’s defense industry grew 6 times last year. This was announced by the Minister of Strategic Industries of Ukraine Herman Smetanin during a recent speech in parliament.

The website of the ZBROYARI: Manufacturing Freedom platform website provides the following figures, which give a generalized view of the industry’s potential:

– 100 state-owned companies,

– 400 private defense companies,

– 300,000 gunsmiths,

– 20 billion dollars of annual production capacity.

It also emphasizes that today, Ukrainian armorers are capable of producing three times as many weapons and military equipment as the Ukrainian budget can buy.

Last October, President of Ukraine Volodymyr Zelenskyy stated that in the first half of 2024 alone, Ukraine produced 25 times more ammunition for artillery and mortars than in the entire 22nd year. The total number of drones that Ukraine is capable of producing annually has already reached 4 million.

Василевич Сергій
Editor