KYIV — Ukraine is facing a €23 billion shortfall in its defense budget this year, according to President Volodymyr Zelenskyy. This funding is crucial for military supplies, soldier salaries, and support for families of those killed in the ongoing conflict with Russia. Zelenskyy stressed the urgency of the situation in a speech on Monday. He said, "We are not asking [you] to fight for us. Give Ukraine everything to stop this war, to stop it faster than Putin can start the next one."
Key Details
In response to the conflict, the European Union has approved €6.1 billion for Ukraine's defense. This funding is part of a broader €90 billion loan program. European Commission President Ursula von der Leyen stated that the funding aims to enhance Ukraine's air and missile defense capabilities amid intensified Russian attacks. She noted, "As Russia intensifies its attacks, we are stepping up to help Ukraine protect its people and defend its skies."
Background
The EU's funding will focus on buying missiles, ammunition, and radar systems. Most supplies will come from European defense companies. This decision follows Ukraine's experience of 376 missile strikes in June alone. Ukrainian Prime Minister Sergii Koretskyi welcomed the EU's support. He highlighted the importance of timely assistance as winter approaches. Leaders from various countries, including Finland and Luxembourg, gathered in Kyiv on Monday to discuss further military and energy support for Ukraine.
The EU's funding is likely to boost defense-related stocks and European defense contractors. These companies will ramp up production to meet Ukraine's urgent needs. Investors will watch for further commitments from Western allies as the conflict continues to evolve.
Based on reporting by: politico.eu, euronews.com