Budget support for the Ukrainian defense-industrial complex
The Ukrainian defense-industrial complex (DIC) has received significant budget support for recovery after attacks, exceeding 1.5 billion hryvnias. The funding was initiated by the Ministry of Defense in the summer of 2023 and is aimed at enhancing the resilience of defense enterprises in the face of modern threats.
As part of this initiative, the Ministry of Defense is developing a plan to protect the DIC from future strikes, including from guided aerial bombs (GABs), as noted by Denys Shmyhal. He emphasized the importance of operational response and assured that
there would be no expectations of quarterly reports, no delays, and 'blind spots'.
Improving financial management and recovery measures
To improve financial management in the Armed Forces of Ukraine, a 'Budget' system has been put into operation, built on SAP components. Since the beginning of 2025, all commands and the State Special Transport Service have been working within this system, allowing more than 60% of budget managers in military units to already utilize new opportunities.
Among the main measures contributing to the recovery of the DIC, several key areas are highlighted:
- Changing the geography of production, including the redistribution of capacities to enhance resilience.
- Relocation (duplication) of capabilities, which involves creating backup or duplicating capacities for critical enterprises.
- Moving productions out of risk zones, particularly from areas where the Russian army is actively using GABs.
- Construction of underground production complexes to ensure maximally protected sites for military production.
According to information from Oksana Ferchuk, one consolidated operational report, which previously required about 800 man-hours, is now prepared three times faster, indicating significant improvements in management and data processing under wartime conditions. Thus, the Ukrainian DIC continues to adapt to new challenges and enhance its efficiency in ensuring national security.
This initiative of the Ministry of Defense underscores the importance of preventing new threats and strengthening industrial capabilities in wartime. Supporting the DIC is critically important for ensuring the resilience of Ukraine's defense capabilities as the country faces ongoing security challenges. The implementation of new technologies and financial management systems also reflects a commitment to modernization and resource optimization, which may positively affect the operational readiness of the Armed Forces in the future.