(Kyiv) – The Ukrainian government has secured vital financial commitments to strengthen its forces for the coming year, with Defense Minister Rustem Umerov announcing that Ukraine has finalized agreements totaling over €12.6 billion, $10.7 billion, and £3 billion from several international partners. These funds, gathered through various meetings and negotiations over the fall, are intended to support Ukraine’s military efforts as the conflict with Russia continues to escalate on multiple fronts.
As of November 2024, the situation on the ground in Ukraine remains dire, with heavy fighting ongoing, particularly in regions such as Kurakhove and Pokrovsk. Russian forces have intensified their attacks in areas like Sumy Oblast, while Ukrainian troops continue to defend key regions, including Kharkiv Oblast. Both countries are ramping up efforts to strengthen their military capabilities. In a significant development, President Zelenskyy announced that Ukraine would begin production of thousands of cruise missiles and drones in 2025, a move aimed at enhancing Ukraine’s offensive capabilities. In response, Russia has been ramping up its own defense systems, including the development of intermediate-range ballistic missiles, one of which was launched on November 22 over Dnipro.
Umerov revealed that the Baltic States—Lithuania, Latvia, and Estonia—have pledged to allocate 0.25% of their GDP to Ukraine’s defense in 2025. The UK has committed £3 billion annually until 2031, while Denmark has promised €8.7 billion until 2028. For 2025, Denmark plans to allocate €2.2 billion in military aid, including joint projects under a new initiative known as the “Danish Model 2.0.” This approach, which has proven successful, includes the use of frozen Russian assets to fund weapons production within Ukraine for the benefit of Ukrainian forces.
The European Union also plans to send a second tranche of military aid in early 2025, amounting to €1.9 billion. These funds will be used to procure essential supplies, including ammunition, air defense systems, and missiles, while also supporting Ukraine’s defense industry. Additionally, NATO will contribute up to €500 million as part of its Comprehensive Assistance Package for 2025.
Other countries have also stepped up their support. The Netherlands has pledged €4 billion for the period between 2024 and 2026, and Germany has committed to providing €4 billion in direct military aid. The United States will provide $5.5 billion in military support, while Norway will increase its contribution to $2.7 billion. Sweden has announced a three-year framework program, with plans to contribute $7.5 billion, or $2.5 billion annually.
In recent weeks, Umerov emphasized that these commitments are the result of extensive talks with international allies, which focused on analyzing Ukraine’s defense needs and exploring new formats of cooperation. One area of focus has been the development of Ukraine’s defense industry, which is expanding its capacity to produce long-range missiles, drones, and essential military equipment such as 155mm ammunition, air defense systems, and armored vehicles. Additionally, Ukraine is working to localize production of critical technologies like electronic warfare systems, robotics, and radar systems.
The success of the “Danish Model” has highlighted the potential of financing defense contracts with Ukrainian defense industry enterprises using foreign partner funds. This model, in which funds from allies are used to procure locally produced Ukrainian defense products, has proven highly effective in sustaining Ukraine’s defense production efforts.
The European Commission has also weighed in, discussing the allocation of €1 billion from frozen Russian assets to support the further development of Ukraine’s defense sector.
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