Ukraine seeks $20 bln to enhance defence production amid ongoing conflict

Ukraine's Strategic Industries Minister Herman Smetanin has announced a pressing need for $15 billion to $20 billion in funding to significantly boost the country's weapons production capabilities, including long-range missiles, air defence systems, and drones.

This appeal comes as Ukraine continues to repel Russian aggression and strengthen its military efforts, Caliber.Az reports.

In an interview with Bloomberg News at the World Economic Forum in Davos, Smetanin highlighted that while Ukraine's defence industry has made notable advancements, with approximately 40% of the armaments used by its forces being domestically produced, funding remains the primary obstacle to further growth. He pointed out that Ukraine's economy, heavily reliant on foreign assistance, can only finance about half of its military production requirements.

“In most aspects we have more capacities than funding…We need to find from $15 billion to $20 billion around the world in order to increase production,” said the minister.

To facilitate this, Ukraine is pursuing military financing through a strategy known as the “Danish model,” where allied governments directly fund ammunition produced in Ukrainian facilities. Additionally, Ukraine has established joint arms production ventures with prominent Western defence companies, including Germany’s Rheinmetall AG and the UK’s BAE Systems.

As the conflict with Russia continues, Smetanin pointed out the necessity of asymmetric strategies, given the vast resources available to Russia compared to Ukraine. He noted the importance of quickly developing technologies to adapt to the evolving demands of the battlefield, as demonstrated by Ukraine’s rapid advancements in military drone technology during the ongoing war.

“To wage that battle on equal terms with Russia, we definitely have to be together with our allies,” Smetanin concluded, underscoring the critical need for international collaboration in Ukraine’s defence efforts.

By Aghakazim Guliyev