Ukraine’s defence industry has been growing steadily since 2022 and, by 2025, reached a production capacity of $35 billion. To fully utilize this capacity, Ukraine is attracting funding through European Union programs and individual initiatives of partner states.
“We are grateful to all our partners for supporting Ukraine’s defence capabilities and the development of our defence industry, as this is a contribution to strengthening the security of all of Europe,” said the Minister of Defence of Ukraine, Denys Shmyhal.
In 2025, foreign funding for Ukraine’s defence industry totalled $6.1 billion. By comparison, the figure for 2024 was approximately $600 million.
Contributions to Ukraine’s defence industry came from the United Kingdom, Denmark, Lithuania, Canada, Iceland, Ireland, the Netherlands, Germany, Norway, the United States, and Sweden.
Nearly $1.8 billion was allocated to the production of Ukrainian weapons under the ‘Danish model,’ introduced in 2024.
Over $4.3 billion was mobilized through direct procurement by partner states from domestic manufacturers to meet the needs of Ukraine’s Defence and Security Forces. Of this amount, nearly $900 million was allocated to equipping units under the “Drone Line” project, initiated by the President of Ukraine.
A significant share of funding in 2025 came from proceeds generated by frozen russian assets. In total, Ukraine’s defence industry received over $1.1 billion via this mechanism.
In addition, Ukraine has submitted its own defence-industrial projects under the SAFE mechanism. The total expected funding for these projects is $5 billion. Joint projects with European partners represent tangible steps toward integrating Ukraine’s defence industry into the European ecosystem.