**Ukraine Boosts Domestic Defense Procurement, Spends Record $3.8 Billion**
In a significant move to boost its military capabilities amid the ongoing Russia-Ukraine War, Ukraine’s Defense Procurement Agency (DPA) has signed contracts worth Hr 158 billion ($3.8 billion) with domestic weapons manufacturers in the first six months of 2025. This marks a substantial increase from the same period last year, according to the country’s Defense Ministry.
**A Shift Towards Domestic Production**
The DPA, which operates on an annual budget of Hr 306.1 billion ($7.62 billion), has funded contracts with 155 Ukrainian manufacturers throughout the year. The agency aims to transform Ukraine into a defense technology center, accelerating military production and reducing dependence on foreign suppliers. This shift towards domestic production has resulted in a significant increase in the share of domestically-produced arms and equipment in total DPA procurement.
**Unmanned Systems Drive Growth**
Unmanned systems are driving much of this growth, with 95% of drone purchases now sourced domestically within Ukraine. According to President Volodymyr Zelensky, domestically-manufactured weapons now comprise more than 40% of the total used by Ukraine. This trend reflects a growing effort to develop and produce advanced military technology within Ukraine.
**Ukraine Seeks Additional Financing**
To further enhance its military manufacturing capabilities, Ukraine is currently seeking additional financing. President Zelensky has indicated that domestic military production requires $25 billion annually to function effectively, and he is actively coordinating with Western allies to secure this funding. With considerable advances in drone technology, Ukraine aims to become a major player in the defense industry.
**A New Era for Ukrainian Defense**
The increase in domestic procurement reflects a new era of self-sufficiency for Ukrainian defense. As the country continues to navigate the complexities of war, it is clear that domestic production and innovation will play a crucial role in its military strategy. The shift towards domestically-produced arms and equipment also underscores Ukraine’s growing importance as a regional player.
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