Reznikov: cost of arming Ukrainian army needs to be increased ten-fold

KYIV. Dec 8 (Interfax-Ukraine) – Most of the funding allocated for the Ukrainian defense sector is "wasted," while only 15% to 20% of the required amount of funds is allocated for armaments, despite the fact that the Defense Ministry received the largest budget for 30 years in 2021, Defense Minister of Ukraine Oleksiy Reznikov has said.

"We are talking about a chronic problem: over 70% of the budget is the cost of maintenance. Rearmament, combat training and development are financed only for 15% to 20% of the need. Conditionally, now we have received UAH 28 billion for armament, together with government guarantees will be UAH 40 billion. But if you add up the expenditures on armament from the already approved, agreed and promising programs, then you need UAH 230 billion to UAH 250 billion, annually," Reznikov said in an interview with the Armyinform publication released on Wednesday.

He said that Ukraine needs modern air defense and missile defense systems, a powerful fleet and coastal defense, combat aviation and a missile program. In addition, investments are needed in advanced developments, unmanned technologies, automated control systems, and robotics.

"Now we have over 40,000 people in the queue for apartments, and two-thirds do not go to the second contract, plus hundreds of unfinished projects. This is a legacy which is rooted in Soviet times and needs to be worked with," the minister said.

"If we take social issues, it is necessary to significantly increase monetary security. If we raise it by 30%, we need UAH 18 billion a year. Unfortunately, now there are no such funds. And my task is to look for these resources," he said.

He said that his primary task in the post was to ensure the effective use of budget funds.

"There was a risk that by the end of the year we will come out with debts for cash support of servicemen in over UAH 2 billion. This issue has now been resolved, payments were made at the end of November. This is just an example of the well-coordinated work of the Defense Ministry, the Finance Ministry and the relevant committee of the Verkhovna Rada of Ukraine. Everything should be rhythmic in December," Reznikov said.

He also said the Defense Ministry managed to agree on an increase in funding by UAH 2.5 billion before the approval of the 2022 national budget. This will guarantee stable payment of monetary allowances, "combat" social payments to our soldiers and begin a gradual increase.

"That is why one of the main tasks in the year is to start structural changes in the defense budget so that they will be enshrined in the law in 2023. This is about increasing the share of development expenditures while maintaining the course of raising social standards," the minister said.