The $27 billion shortfall in the Ministry of Defence budget partly relates to service members’ pay. These are needs for October, November and December.
But it is mainly a lack of funds for drones and missiles. President Volodymyr Zelenskyy said this on 25 September during an audio briefing with journalists.
“Roughly a third of this money, or perhaps even a little more, is for January, February and March — drones. If we do not place the orders and pay for them in October and November, we will face serious challenges in January and February above all,” Zelenskyy said.
These issues have been discussed with the EU and the IMF. The IMF cannot finance military supplies, and the European Commission is being asked to bring forward the second tranche planned for next year.
“January and February must be stocked with the appropriate drones and missiles,” the head of state stressed.
The President discussed the possibility of covering this shortfall not only with international partners, but also with business groups. There has been a constructive response from the EU and the IMF, because everyone understands it is important to cover this deficit, Zelenskyy said.
The Prime Minister, together with the Ministry of Finance and the head of the Foreign Intelligence Service, will work on securing the funds. Zelenskyy added that they expect to obtain part of the money through new Drone Deals with partners.
“This team will work through all the details, and there will be a meeting either in Ukraine or in Brussels in the near future,” the head of state added.
Context
Last month, the President said that the Ministry of Defence budget shortfall for this year stands at $27 billion. At the start of the year, the ministry decided to use funds earmarked for the second half of the year. They were spent on drones and other needs.
Mykhailo Fedorov, who headed the ministry in the first half of the year, said he does not know where this figure came from.