Ukraine has the capacity to manufacture four million drones annually and is rapidly expanding its production of other weapons, according to President Volodymyr Zelensky. In remarks released on Wednesday, Zelensky stated that Ukraine has already secured contracts to produce 1.5 million drones this year. Prior to Russia's invasion in February 2022, drone production in Ukraine was virtually non-existent.
Zelensky emphasized that under the challenging conditions of full-scale war and constant Russian strikes, Ukrainians have managed to establish a new defense industry. Prime Minister Denys Shmyhal added that Ukraine tripled its domestic weapons production in 2023 and doubled that output again in the first eight months of this year. However, no specific figures were provided by Ukrainian officials.
As the war with Russian forces enters its 31st month with no end in sight, Ukraine allocates approximately half of its state budget—around $40 billion—to defense. The country also receives substantial military and financial support from Western allies. In contrast, Russia, which is both larger and wealthier, plans to increase its military spending by 25% next year to about $145 billion.
Ukrainian officials anticipate a decline in foreign funding while their defense needs continue to grow. Consequently, Kyiv is increasingly focusing on domestic production. Shmyhal announced that the government plans to boost spending to support the growth of domestic weapon production in 2025. The next year's budget includes a 65% increase in funds for weapon purchases, amounting to almost $7 billion.
Shmyhal highlighted that Ukraine's strategic goal is to enhance its long-range capabilities and achieve a technological edge over Russian forces. Despite Moscow's steady advances in Ukraine's eastern Donetsk region, including the claimed control of the mining town of Vuhledar, Ukraine prioritizes the ability to strike deep within Russia. Zelensky has been seeking permission to use Western long-range missiles for strikes inside Russia, but no agreement has been reached so far.
During Tuesday's event, several agreements were signed between Ukrainian and foreign companies to produce ammunition, various types of drones, and to repair Western equipment in Ukraine. The Franco-German defense group KNDS, known for producing heavily armoured vehicles, announced the opening of a subsidiary in Kyiv.
