Ukraine plans to increase defense industry capacity by 6 times in 2024

Prime Minister of Ukraine, Denys Shmyhal, made the statement at a government meeting on January 3.

According to him, in 2023, Ukraine attracted USD 42.6 billion in external financing. Of these, 27% are grants. The needs for this year are more than USD 37 billion, and Ukraine is counting on the help of its partners.

At the same time, Ukraine is increasing its own budget revenues, primarily customs and tax revenues, Shmyhal noted. According to him, more than UAH 1.1 trillion in taxes, duties and other payments were received by the general fund of the state budget last year.

"All these funds are allocated for security and defense. This year we plan to spend more than UAH 750 billion on payments to the military. More than UAH 265 billion will be spent on the purchase, production and repair of weapons," Shmyhal said.

He also noted that as of January 1, the minimum wage in Ukraine increased to UAH 7,100. Another increase is planned for the spring. The subsistence minimum has risen to UAH 2,920, and the minimum pension has increased from UAH 2,093 to UAH 2,361.

"We plan to index pensions starting March 1," the Prime Minister said.

Domestic arms production in Ukraine

Minister of Strategic Industries of Ukraine, Oleksandr Kamyshin, reported that in June 2023, Ukraine produced more mortar and artillery shells than in the entire year of 2022.

Ukraine has also focused on the mass production of combat drones. In particular, it produces maritime drones, which have already taken part in at least two attacks: on the Kerch Bridge in July and on the port of Sevastopol in October 2022.

In addition, Ukraine has begun mass production of Rubaka “kamikaze” drones of operational and strategic importance, which are already proving effective in combat. The new UAVs can cover distances of up to 500 km.

At the end of August last year, President Zelenskyy reported that a long-range weapon made in Ukraine had hit a target 700 kilometers away.

At the end of October last year, at a meeting of the Supreme Commander-in-Chief's Staff, participants discussed increasing domestic production of NATO-standard artillery systems and artillery shells.