Yulia Svyrydenko’s Cabinet of Ministers plans to attract $5B from partners for the development of Ukraine’s defence industry in 2025

Prime Minister of Ukraine Yulia Svyrydenko has presented the government’s action program for 2025–2026. The program focuses on three key areas: supplying the army, developing new technologies, and transforming the defense forces. In the field of security and defense, the main priorities are attracting additional funding from partners for weapons production and equipping the army.

According to the draft programme, the government aims to secure at least $5 billion in partner funding for Ukraine’s defence industry by the end of 2025, and to at least double that figure in 2026.

“It is also important for us that at least 30% of the funds allocated from the budget are directed to Ukrainian manufacturers. We need to implement the Danish model. We plan to launch such projects by mid-2026,” said Svyrydenko.

The development of the sector includes the creation of a registry of arms and equipment manufacturers, the signing of strategic agreements with the United States, a new electronic warfare policy, and a unified strategy for building fortifications.

Other priorities involve the advancement of drones, artificial intelligence, and digital systems aimed at protecting soldiers’ lives and improving battlefield response. The government also intends to launch a special legal regime, Defense City, open a private military tech sector, introduce grant programs for innovation, and create a platform for cooperation with suppliers.

The transformation of the defense forces envisions a shift to a corps-based system, the development of cyber forces, and the creation of an integrated air and missile defense network. Additional efforts include the digitalization of accounting and logistics, better service conditions for military personnel, the expansion of the “Army+” and “Reserve+” services, and transferring state defense enterprises to professional managers or the State Property Fund.

By December 2025, the government aims to launch pilot joint production facilities abroad, approve the Drone Deal with the United States, and complete the second stage of digitalizing the military medical commission process.

By June 30, 2026, joint production in Ukraine with Rheinmetall, BAE Systems, Thales, KNDS, and Kongsberg D&A is expected to be operational, along with the full implementation of the Drone Deal.

By December 31, 2026, the government plans to deploy a new defense planning and management system, introduce the corps structure, integrate air and missile defense, and bring cyber and space components to at least 60% operational readiness.