18 April, 2024
Ukraine launches an international fundraising campaign to raise $10 billion from abroad to purchase Ukrainian-made weapons.
The Minister of Strategic Industries of Ukraine announced this.
Within the “ZBROYARI: Manufacturing Freedom” project, it is planned to accumulate about $10 billion in 2024, which should be used to purchase weapons from Ukrainian enterprises as part of military assistance.
According to Kamyshin, the first such decision to purchase weapons for the Ukrainian Defense Forces was made on April 17 by the Danish government. The country has allocated $28.5 million for the purchase of weapons and military equipment for the Armed Forces of Ukraine from Ukrainian manufacturers.
“The Ukrainian defense industry has already accelerated so much that the Ukrainian budget cannot fully utilize the orders of manufacturers. The capacity of the Ukrainian defense industry is about $20 billion. At the same time, Ukraine has only $6 billion to buy weapons. Roughly speaking, only a third of all the machinery in the country is working, because there are not enough funds to provide orders for the rest.
The best way out of this situation is to convince partners who are ready to buy weapons for Ukraine to do so here. Ukrainian weapons manufacturers are capable of producing more weapons, exactly the kind of weapons our military needs. Defense contracts are an important element of economic support for Ukraine. Everyone wins when it is made in Ukraine,” the Minister noted.
Denmark invests in Ukrainian defense industry
The decision to purchase weapons from Ukrainian producers is aimed at strengthening and increasing domestic Ukrainian production.
To start cooperation and place the first orders, the Minister of Defense Troels Lund Poulsen visited several Ukrainian defense companies in Kyiv in March and assessed their capacities.
The details of foreign orders in the interests of Ukraine are not disclosed, but it is reported that it is the production of ammunition, drones, and missile parts.
A shot from the Stugna-P during the competition. Photo credits: ArmyInform
In addition to Denmark, other customers of Ukrainian military products are expected to include the United Kingdom, the Netherlands, and Latvia, which finance the purchase of drones through the so-called Drone Coalition.
Ukraine has already managed to attract about $400 million from the United Kingdom and Latvia, as well as $213 million from the Netherlands.
The Ukrainian representatives offered their partners a form of cooperation based on the 50-30-20 principle, where 50% of the financing would go to Ukrainian manufacturers.
“Roughly speaking, only a third of all the machinery in the country is working, because there are not enough funds to provide orders for the rest.”
What is worse; too much money for too little manufacturing capacity, or too little money for too much manufacturing capacity?
I’d say the first one is worse. So, this is an interesting campaign to alleviate the money problem.
Yewh, Ukraine is on a promising way economically, but the state’s finances haven’t improved at the same pace (which is typical for wartimes). This donation drive is a good move to close the gap. In the longer run, I see Ukrainian arms exports ahead, possibly of Bogdana self moving howitzers, maybe in exchange for weapons systems that the country doesn’t produce yet. What’s certain is that “Made in Ukraine” already has a very positive reputation – it stands for toughness, capabilities and battle proven sucesses! I can only repeat my mantra (“deja vu all over again”):
‘Just get through this challenging year and the future looks bright!’
🇺🇦🙂👍
That’s true, Mr. Gray. If this war has a silver lining, it’s the rise of Ukrainian reputation, and this in many respects.