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Military Budget

Ukraine's total defense spending during 2001 was Hr 2.7 billion ($550 million), while the actual needs of the country's army are estimated at "at least" Hr 10 billion ($2 billion).

Insufficient funding of defense needs requires finding extra sources of funding. It can be solved by economic activities within the Armed Forces. The State leadership considers it a temporary, but necessary activity for the Armed Forces under current conditions. As the result of this activity in 2000 it was planned to gain more than 900 million Hrn for defense needs.

The main goal of economic activity is to enhance funding support of forces and ensure social protection of military personnel and their families.

The State Program defines its main near-term priorities as the following:

Looking for additional sources of defense funding.

Improving the current economic status of MOD enterprises and enhancing their production outputs.

Improving the procedures of selling excess Armed Forces equipment, increasing the cash flow from leasing equipment, facilities and providing services.