Key facts
- Ukraine faces serious challenges with drone supply in January and February if orders and payments are not made in October and November.
- Around $27 billion of Ukraine's budget deficit is allocated for defense spending, including drones and missiles.
- President Volodymyr Zelenskiy received a positive response from EU and IMF representatives regarding Ukraine's funding needs.
- Ukraine expects to need over $52 billion in international financial aid next year.
- An IMF mission is expected in November for a second review of Ukraine's financing program.
Ukrainian President Volodymyr Zelenskiy warned that Ukraine could face significant challenges with its drone supply this winter if orders and payments are not secured in the coming months. He stated on September 25 that approximately $27 billion of the country's budget deficit is dedicated to defense spending, including the production of drones and missiles.
Zelenskiy indicated that delays in ordering and paying for these weapons in October and November could lead to serious difficulties in January and February. He mentioned discussing Ukraine's funding requirements with representatives from the EU, IMF, businesses, and financial groups, receiving a "positive and constructive response." Zelenskiy emphasized that partners understand the importance of covering the deficit and investing in Ukrainian-made drones and missiles.
Ukraine's government has described its current budget situation as the "worst" since 2022. Prime Minister Serhii Koretskyi previously noted that delays in legislative approvals could jeopardize a substantial portion of the $29.5 billion in international financing. Beyond defense, Ukraine relies on foreign aid for social and humanitarian expenses, anticipating a need for over $52 billion in international financial aid next year. Finance Minister Sergii Marchenko expects an IMF mission in November for the second review of Ukraine's financing program, requiring Kyiv to have a funding plan for the upcoming year ready.