Ukraine to focus on long-term defense contracts to stabilize materiel production, says PM Shmyhal

Almost all internal resources of the state budget are directed towards defense and security.

"We have a record budget this year for the production and procurement of weapons, amounting to at least 739 billion hryvnias ($17.8 billion)," Shmyhal said.

“We are focusing on purchasing Ukrainian weapons. We are investing state resources in this and supporting the private sector.”

One of the key demands from defense enterprises is the introduction of long-term contracts, he stressed.

"The Ministry of Defense, the Ministry of Finance, and the Ministry of Strategic Industries have been tasked with addressing this issue," the prime minister noted.

“The first three-year contracts were signed last year. This year, the goal is to make three-year and five-year contracts the norm for manufacturers of weapons and military equipment.”

On Feb. 4, the Ukroboronprom defense conglomerate and the Polish Armaments Group (PGZ) signed a memorandum of cooperation in the defense sector.

On Dec. 31, Shmyhal stated that in 2024, the Ukrainian government allocated more than half of the state budget expenditures to defense.