Shmyhal announced Ukraine's current defense spending
Category
Economics
Publication date

Shmyhal announced Ukraine's current defense spending

Shmyhal
Source:  UNN

Ukraine spends up to 60% of the general fund of the state budget on defence. This was announced by Prime Minister Denys Shmyhal during question time to the government in the Verkhovna Rada.

Points of attention

  • Ukraine spends up to 60% of the general fund of the state budget on defence, Prime Minister Denys Shmyhal said.
  • Financing of the army and defence costs is carried out exclusively from the internal sources of the country.
  • Ukraine receives significant financial assistance from the USA, the European Union and other international partners.
  • Restructuring of debt on Eurobonds helped Ukraine to save a significant amount of funds that can be used for defence.
  • Until the end of 2024, Ukraine can receive additional funds from frozen Russian assets to support its defence potential.

Ukraine spends almost 60% of its total expenditure on defence

Shmyhal reminded that the army and defence expenses are financed only from domestic sources.

Defence expenditures make up to 60 percent of the total amount of expenditures of the general fund of the state budget.

Denis Shmyhal

Denis Shmyhal

Prime Minister of Ukraine

Funds are needed to provide the Defence Forces with everything they need. They will be sought domestically, although there are also needs for funding from partners.

The total needs of the country in external financing per year amount to 38 billion dollars. In 2024, Ukraine has already received an amount of 24.5 billion dollars.

The Prime Minister told the People's Deputies how much more money should come from the partners

The main donors are the USA, the European Union, the IMF, Great Britain, Canada and Japan.

The Prime Minister said that the government has an understanding of how exactly the needs in external financing will be covered.

5.4 billion dollars from the IMF, here we are approaching the fifth review of the cooperation program, in fact, today the mission in Ukraine, in Kyiv, continues, Shmyhal said.

Ukraine will receive 16 billion euros under the Ukraine Facility program. Washington will give Kyiv a little less than 8 billion.

Until the end of 2024, Ukraine can receive money from frozen Russian assets. They will also be spent on defence

This resource should arrive in Ukraine no later than the end of this year. These are funds to cover the budget deficit in the 25th year, these are also funds for the restoration and maintenance of our defense potential, Shmyhal said.

The head of the government reminded of the decision of the leaders of the "Big Seven" to transfer funds from the income of Russian frozen assets to Ukraine

The Prime Minister reminded that Ukraine saved 11.4 billion dollars thanks to debt restructuring on Eurobonds. This is the amount that Kyiv had to pay over the next three years.

Ukraine completed debt restructuring

The Ministry of Finance previously reported that Kyiv managed to reduce the amount of debt to creditors and save money on interest, maintenance and debt repayment.

Ukraine agreed with investors to exchange 13 series of government Eurobonds and a series of Ukravtodor Eurobonds for eight new Eurobonds.

The total value of the new Eurobonds is 15.2 billion dollars. The total amount of debt on old Eurobonds, together with capitalized interest, amounted to 24 billion dollars.

97% of investors agreed to debt restructuring.

Category
Events
Publication date

Drone attack halts operation of Kropotkinskaya oil pumping station in Kuban

drone strike
Source:  online.ua

The largest oil pumping station of the Caspian Pipeline Consortium (CPC) in Russia, Kropotkinskaya, was put out of action after drone strikes.

Points of attention

  • A drone attack has severely disrupted operations at the Kropotkinskaya oil pumping station in Kuban, leading to its decommissioning.
  • The Caspian Pipeline Consortium (CPC) is facing challenges in oil transportation as a result of the shutdown of the Kropotkinskaya station.
  • Efforts are underway to assess the damage caused by the drone strike and determine the timeline for restoring the station's operability.

Kropotkinska NPS stopped working due to drone strike

According to the CTC report, the strike was carried out by seven unmanned aerial vehicles loaded with metal striking elements in addition to explosives.

At this time, the Kropotkinskaya NPS has been decommissioned. Oil transportation via the Tengiz-Novorossiysk pipeline system is carried out at reduced pumping rates, bypassing the NPS.

A group of CPC management went to the site to assess the damage and determine the time for restoring the station's operability.

Kropotkinskaya NPS, located in the Caucasian district of the Kuban, is the largest CPC oil pumping station in the Russian Federation.

Caspian Pipeline Consortium (CPC) is an international oil transportation company with the participation of companies from Russia, Kazakhstan, as well as foreign production companies, created for the construction and operation of the Caspian trunk oil pipeline with a length of over 1,500 km.

The pipeline receives oil mainly from fields in Western Kazakhstan, as well as raw materials from Russian producers. The oil is transported to the company's marine terminal in the village of Yuzhnaya Ozerievka (west of Novorossiysk), where it is loaded onto tankers for shipment to world markets.

By staying online, you consent to the use of cookies files, which help us make your stay here even better 

Based on your browser and language settings, you might prefer the English version of our website. Would you like to switch?