--- title: "10.8 Billion Hryvnias for the Front: How Ukraine Is Reshaping Its Economy for War Needs and Launching Exports" description: "The Cabinet of Ministers allocated an additional 10.8 billion hryvnias for defense: funds were taken from PIT and taxes on casinos. Ukraine is actively scaling the production of drones and missiles, launching exports under the new Drone Deals format. πŸ‡ΊπŸ‡¦πŸ›‘οΈ" date: 2026-05-28T08:44:00.000Z lang: en url: https://xab.info/en/posts/cabinet-of-ministers-allocated-10-8-billion-for-weapons-and-exports tags: [] publisher: "XAB.info" --- # 10.8 Billion Hryvnias for the Front: How Ukraine Is Reshaping Its Economy for War Needs and Launching Exports ![Ukrainian Prime Minister Yulia Sviridenko at a briefing in parliament with the Ukrainian flag](https://xab.info/media/2026/05/28/kabinet-ministrov-vydelil-10-8-mlrd-na-vooruzhenie-i-eksport/yulia-sviridenko-kabmin-vooruzhenie.webp) The Ukrainian government has made a strategic decision that changes the logic of defense financing. The Cabinet of Ministers allocated an additional 10.8 billion hryvnias, directing them towards the purchase of weapons and the development of domestic production. This was announced by Prime Minister Yulia Sviridenko during a briefing, emphasizing that the funds were accumulated from internal budget reserves. ### Where Did the Billions Come From? Amidst strict economy and resource shortages, where did such substantial sums come from? The Prime Minister gave a clear answer: the money came from two sources. These are the personal income tax (PIT) and licensing fees from legalized gambling and lotteries. Essentially, the state redirected part of citizens' tax revenues and profits from the entertainment industry directly to support the Defense Forces. ### Allocation of Funds: Repair vs. Innovation The budget was divided into two key directions, reflecting the current priorities of the war: - **9 billion hryvnias** β€” these are "hot money" for operational needs: purchasing new weapons, urgent repair of equipment, and its modernization. These funds are intended to ensure the army has resources right here and now. - **Almost 2 billion hryvnias** β€” an investment in the future. These funds will go towards scaling up Ukraine's defense industry (DI) and implementing technologies that have already proven their effectiveness on the battlefield. ### From Import to Export: A New Reality Ukraine is experiencing a fundamental paradigm shift: the country is ceasing to be just a consumer of Western aid and is becoming an active player in the global arms market. The focus is shifting to high-tech solutions β€” drones and missiles. Production capacities are already working at the limit. For example, the production of "Flamingo" missiles has reached three units per day, and the transition to domestic engines will allow these rates to increase manifold. Additionally, the development of a domestic guided aerial bomb, ready for combat use, has been successfully completed. ### Drone Deals Format and International Partnership President Volodymyr Zelenskyy proposed a new format of cooperation to the world β€” Drone Deals. The essence of the proposal is simple: Ukraine is ready to export its weapons and technologies, as for certain items, the surplus of production capacity reaches 50%. The initiative has already received a response. About 20 countries have shown interest in Ukrainian developments, the first agreements have been signed, and contracts are being prepared for implementation. It is also worth noting the launch of a joint program with Germany, "Brave Germany," aimed at developing defense technologies and supporting military startups. Ukraine is not just surviving; it is building a new defense economy.