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NZ Herald
22-07-2025
- Business
- NZ Herald
With an uncertain future weapons supply from other countries, Ukraine shifts to building its own
United States President Donald Trump's inconsistent support for Ukraine has called into question the continued backing of the US, Kyiv's biggest arms supplier. The Trump Administration recently paused some arms transfers but then reversed course, agreeing to sell weapons to European allies, which will then give them to Ukraine. But even with greater certainty about the flow of Western weapons, it still does not match what Ukraine needs to fend off the Russian invasion. That reality has produced a fundamental shift in Ukraine's appeals to its Western allies. Rather than pleading primarily for arms, as it did early in the war, Ukraine is increasingly asking for the money to build its own weapons. The effort involves an array of both private and government-owned firms involved in making vehicles, engines, electronics, weapons, and ammunition. At the start of the war in 2022, Ukraine relied mostly on artillery, shells, and machine guns donated by Western partners. Now, it produces about 40% of the weapons used at the front, according to Ukrainian President Volodymyr Zelenskyy, and it is looking to increase that amount sharply. The most striking example of this growing self-reliance is the use of drones, now omnipresent on the battlefield and produced almost entirely in Ukraine. 'This does not bring peace of mind, but it does provide greater moral confidence that we will not be left empty-handed,' Zelenskyy said in February of Ukraine's booming defence industry. To further increase production, Ukraine needs more money, which it sorely lacks. Olena Bilousova, a defence industry expert at the Kyiv School of Economics, said Ukraine had the industrial capacity to produce US$35 billion ($58.6b) worth of military equipment annually, but was producing only up to about US$15b, and was unable to afford more. 'The funding issue is a bottleneck for our defence industry,' Bilousova said in an interview. An employee works on a vehicle at a Ukrainian Armour factory in central Ukraine. Photo / Brendan Hoffman, the New York Times Growing self-reliance - About 40% of weapons used at the front are made in Ukraine. - The drones it uses are produced almost entirely in Ukraine. - Ukraine produces more artillery systems each month than all European countries combined. - It is said to be fully self-reliant for both mortar launchers and shells. Employees work on building mortar launchers at a Ukrainian Armour factory in central Ukraine. Photo / Brendan Hoffman, the New York Times Adding to the pressure to produce more weapons is Russia's own war machinery, which has expanded greatly during the war. Russia's defence budget this year is at least US$150b, about three times as large as Ukraine's. Russia now produces three times as much ammunition in three months as all of Nato does in a year, Mark Rutte, the alliance's secretary-general, said in a recent interview. The imbalance in arms production has given Russia an overwhelming firepower advantage on the battlefield, even in domains such as drones that Ukraine once dominated. Ukrainian soldiers defending the embattled city of Kostiantynivka in the east say Russian attack drones monitor the battlefield day and night, targeting anything that moves. Graffiti left on the bombed-out train station in Kostiantynivka tells the mood. Partly erased where the station wall was blown apart, the words, in English, can still be made out: 'Not asking too much. We just need artillery shells and aviation. Rest we do ourselves.' Unable to match enemy fire, Ukraine is forced to adapt. Using feedback from soldiers on the ground, Ukrainian Armour has started producing vehicles designed specifically to evade drones on the battlefield, including a light buggy capable of racing up to 145km/h to outrun drones. Its construction is bare-bones: an open-topped metal frame, suspension, two seats — and no speedometer. 'Why would you need one?' Belbas said with a smile, as he toured the factory. The New York Times agreed not to disclose the factory's precise location because Russia routinely targets weapons-production sites in Ukraine. Ukrainian Armour also makes a large, unmanned carrier that shows the growing robotisation of the battlefield. It is, in effect, a drone mother ship, designed to transport smaller remote-controlled vehicles to the front. The smaller drones, in turn, deliver food and ammunition to combat positions, while the carrier serves as a relay station for signal transmission. Belbas said robotic vehicles were designed to save the lives of Ukraine's limited number of soldiers, sparing them from risky missions such as resupplying troops at the front. 'Also, it's about money,' he acknowledged. The Ukrainian government pays 15 million hryvnia (about US$360,000) in compensation to the family of each soldier who is killed. Producing a vehicle like this is 'five times cheaper,' Belbas said. The Novator, an armoured vehicle manufactured by Ukrainian Armour. Photo / Brendan Hoffman, the New York Times These innovations make up only a small share of the company's output. Most of its production remains focused on battlefield staples such as mortars — weapons that are reliable in all weather conditions, unlike drones. 'The mortars are like the undying classic weapons,' Belbas said as he stepped into a warehouse lined with mortars mounted on two-wheeled chassis. Last year, the company produced about 1000 mortars, roughly double the previous year's output. Early in the war, Ukrainian troops used Caesar self-propelled howitzers — big cannons mounted on heavy trucks — to pound Russian positions. Now, they have largely turned to a homegrown alternative, the Bohdana, producing nearly 20 units a month, Ukrainian officials say. Bilousova, the defence industry expert, said Ukraine now produces more artillery systems each month than all European countries combined. As for mortars, Belbas estimated that Ukraine has been fully self-reliant for both launchers and shells since last year. It is a turnaround from the start of the war, when nearly all mortar shells were imported. Kyiv has also initiated plans to develop more advanced weapons such as air-defence systems — the type of munitions that were the subject of the Trump Administration's recent flip-flop. (Trump said he did not know who had paused the weapons delivery.) These sophisticated systems are expensive to develop and build, and Kyiv cannot afford to do so on its own. Belbas said contracts with the Ukrainian Defence Ministry to produce more mortars, a far more basic weapon, went unfulfilled because of a lack of funding. To broaden its options, Kyiv recently began a new initiative, inviting its allies to host production facilities within their borders for Ukrainian weapons-makers. Under this model, Ukraine would provide the expertise, while Western partners would provide money and production sites out of reach of Russian strikes. Denmark was the first country to officially endorse the plan, in early July, and Zelenskyy said that 'more such agreements will follow'. Facing the twin threats of Russian expansionism and a diminished US commitment to Nato, Europe is also ramping up military spending and weapons production. Ukrainian officials hope that will mean leaning on Ukraine's hard-won expertise to help rearm the continent. 'Ukraine needs investment. You need skills, you need technology,' Zelenskyy told Western allies this month in Rome. 'And everything we are building now to protect Ukraine will also help protect you.' This article originally appeared in The New York Times. Written by: Constant Méheut Photographs by: Brendan Hoffman ©2025 THE NEW YORK TIMES
The Hill
17-07-2025
- Business
- The Hill
Trump's new Ukraine strategy — A welcome shift, but more is needed
Following his Monday meeting with NATO Secretary General Mark Rutte, President Trump took his latest and largest steps towards tightening the screws on Moscow for continuing and even escalating its war on Ukraine, and rejecting the numerous proposals his administration has offered to establish a stable ceasefire. This is a vastly different approach than the Obama-like reset with Russia that Trump sought in the first months of his administration. However, it is consistent with his pledge to establish a national security policy of peace through strength and his statements the first week in office that he would put pressure on the party to this war that obstructed his efforts to end it. This new Trump approach is based on two lines of pressure: weapons for Ukraine and reduced revenue flows for Russia's economy. Trump's announcement means that he has not only restored the weapons pipeline to Ukraine that had been approved by Congress and the Biden administration last year, but he is sending billions of dollars of additional weapons. Trump himself only mentioned Patriot batteries and missiles, essential to stop Russian ballistic missiles targeting Ukraine's cities, but Rutte also mentioned missiles that could be used to blunt Moscow's military offensives. Rutte came to Washington because NATO members will purchase the U.S. weapons and transfer them to Ukraine; this meets Trump's requirement that U.S. aid to Ukraine end. Nonetheless, this is a significant message to Moscow: If the U.S. weapons supply does not end with the Biden pipeline, Putin's plans to achieve effective control of Ukraine by additional territorial conquest will be far harder to achieve. That goal will be harder still to reach because at the same time Trump announced plans to add pressure on Moscow's stuttering economy by placing secondary sanctions on Russia's trading partners in the form of 100 percent tariffs if Russia does not agree to a peace with Ukraine within 50 days. Moscow has been dependent on trade, especially purchases of its oil and gas, ever since the West placed major sanctions on Russia after the big invasion of February 2022. Since then, Moscow has used a 'ghost fleet' of oil tankers either registered in other countries or unregistered to circumvent the U.S.-led $60 oil price cap to deliver the product. According to the Kyiv School of Economics, this was worth $9.4 billion in revenue last year to Moscow, though its total oil and gas revenues are far higher. Denying Moscow this and additional revenues would be a real blow to its war economy. These steps point to a welcome realism in the White House about Putin's intentions and Russia's danger to our interests, but alone they will prove inadequate to force him to negotiate a stable ceasefire or peace deal. His goal remains to achieve effective political control of Ukraine by seizing more territory on the battlefield. That includes Kharkiv and Sumy in the east, Kyiv and all major cities on the Dnipro River, Odesa and Ukraine's remaining Black Sea coast. He believes that by constant assaults on the frontlines, even with high Russian casualties, and constant bombing of Ukrainian cities, he can impose his will on Kyiv and outlast the West, starting with the U.S. This perception persists in Moscow even after Monday's announcement. Konstantin Kosachev, the deputy speaker of Russia's upper legislative body, called the announcement ' much ado about nothing ' because 'in 50 days so much can change both on the battlefield and in the moods of the powers that be in the U.S. and NATO.' The administration needs to eschew the ad hoc and incremental approach of the Biden team and put together a long-term strategy that blocks Russian gains at the front, weakens the Russian war economy and bolsters Ukraine's ability to not just continue to fight, but to fight more effectively. What might this look like? Yes, we should try to address the immediate air defense needs by getting Ukraine more Patriot batteries and far more interceptor missiles, but our operational goal should be to help Ukraine stop any further Russian gains on the battlefield. That requires a close assessment of what they need to do that. On the economic side, besides reducing Kremlin oil and gas revenues, the U.S., working with allies and partners, should impose sanctions on countries like China, providing dual-use technology for Russian weapons. We can also announce our intention — in consultation with our G7 partners — to arrange the use of the nearly $300 billion of frozen Russian state assets to help Ukraine if Russian offensive operations do not cease by, again, a not distant date certain. Following his strike on Iran, President Trump is in a unique position to dissuade Saudi Arabia from renewing its threats not to buy Eurobonds if those assets are transferred. Over the past four months the administration has learned beyond a shadow of doubt that Moscow has no interest in peace. Only strong measures methodically pursued can persuade Moscow to accept a durable peace for a secure and economically viable Ukraine and reestablished security in Europe.
Daily Tribune
15-07-2025
- Business
- Daily Tribune
Zelensky wants economy minister as new Ukraine PM in shakeup
AFP | Kyiv Ukrainian President Volodymyr Zelensky said Monday that he was recommending economy minister Yulia Svyrydenko become prime minister in a significant political shakeup for the war-scarred country. The announcement could herald a wider reshuffle in the government, three years and half into the Russian invasion. "I have proposed that Yuliia Svyrydenko lead the government of Ukraine and significantly renew its work," Zelensky wrote on social media, posting a picture of the two. "I look forward to the presentation of the new government's action plan in the near future," Zelensky added. Svyrydenko, 39, gained prominence this year during fraught negotiations around a rare minerals deal with the United States that nearly derailed ties between Kyiv and its most important military ally. If the change is approved, she would replace Denys Shmygal, who became prime minister in 2020, in pre-war times. "The government needs a change because people are exhausted," said Tymofiy Mylovanov, a former economy minister who worked with Svyrydenko. Mylovanov, who now heads the Kyiv School of Economics, said the changes would likely bring "a sort of freshness" after three and a half years of war. Zelensky is also considering naming Defence Minister Rustem Umerov as Ukraine's ambassador to Washington, he said at a press conference last week. Zelensky met with Umerov over the weekend, after which he said that "Ukraine needs more positive dynamics in relations with the United States and at the same time new steps in managing the defense sector of our state." Svyrydenko, who is also a deputy prime minister, was appointed to manage Ukraine's struggling economy months before the Kremlin launched its full-scale assault in February 2022.
Euractiv
15-07-2025
- Business
- Euractiv
Ukraine's Zelenskyy proposes new prime minister, defence minister in major reshuffle
Ukrainian President Volodymyr Zelenskyy on Monday proposed a new prime minister and defence minister, part of a major cabinet reshuffle he said would "renew" the government more than three years into Russia's invasion. Economy Minister Yulia Svyrydenko will become prime minister, Zelenskyy said, while incumbent prime minister Denys Shmygal is expected to replace Defence Minister Rustem Umerov. The shakeup, the biggest since the war began, comes after months of setbacks for Ukraine on the battlefield and escalating Russian aerial attacks on Ukrainian cities. "I have proposed that Yulia Svyrydenko lead the government of Ukraine and significantly renew its work," Zelenskyy wrote on social media. "I look forward to the presentation of the new government's action plan in the near future," he added. In a later evening address, Zelenskyy announced Shmygal would become the defence minister. "Denys Shmygal's vast experience will certainly be useful in the position of Minister of Defence of Ukraine," he added later, without providing further detail. Svyrydenko, 39, gained prominence this year for helping broker a minerals deal with the United States that nearly derailed ties between Kyiv and its most important military ally. Shmygal, 49, had served as prime minister since 2020, steering the Ukrainian government through the COVID-19 pandemic and the start of Russia's full-scale invasion in 2022. 'People are exhausted' Shortly after Zelenskyy's announcement, Svyrydenko said Ukraine faced a "crucial time" and listed her priorities as "strengthening" Ukraine's economy, expanding domestic support programmes and scaling up weapons production. Ukraine's economy has been decimated by the Russian invasion, and Kyiv is reliant on tens of billions of dollars in annual support from Western countries to stay afloat. Both cabinet appointments will require approval by parliament, which has largely coalesced around Zelenskyy since the invasion and is unlikely to vote against him. "The government needs a change because people are exhausted," said Tymofiy Mylovanov, a former economy minister who worked with Svyrydenko. Mylovanov, who now heads the Kyiv School of Economics, said the changes would likely bring "a sort of freshness" after three and a half years of war. Zelenskyy said last week he was also considering naming Umerov as Ukraine's ambassador to Washington. Zelenskyy met with Umerov over the weekend, after which he said that "Ukraine needs more positive dynamics in relations with the United States and at the same time new steps in managing the defence sector of our state." The appointments come at a pivotal moment in the three-year conflict. Direct peace talks between Russia and Ukraine on ending the fighting have stalled, while the United States announced earlier that it would boost military support for Kyiv in a major about-turn. (mm)
Time of India
15-07-2025
- Business
- Time of India
Zelensky proposes new PM, defence minister for Ukraine in major reshuffle
Ukrainian President Volodymyr Zelensky on Monday proposed a new prime minister and defence minister, part of a major cabinet reshuffle he said would "renew" government more than three years into Russia's invasion. Economy minister Yulia Svyrydenko will become prime minister, Zelensky said, while incumbent prime minister Denys Shmygal is expected to replace defence minister Rustem Umerov. The shakeup, the biggest since the war began, comes after months of setbacks for Ukraine on the battlefield and escalating Russian aerial attacks on Ukrainian cities. "I have proposed that Yulia Svyrydenko lead the government of Ukraine and significantly renew its work," Zelensky wrote on social media. "I look forward to the presentation of the new government's action plan in the near future," he added. Live Events In a later evening address, Zelensky announced Shmygal would become defence minister. "Denys Shmygal's vast experience will certainly be useful in the position of Minister of Defence of Ukraine," he added later, without providing further detail. Svyrydenko, 39, gained prominence this year for helping broker a minerals deal with the United States that nearly derailed ties between Kyiv and its most important military ally. Shmygal, 49, had served as prime minister since 2020, steering the Ukrainian government through the COVID-19 pandemic and the start of Russia's full-scale invasion in 2022. 'People are exhausted' Shortly after Zelensky's announcement, Svyrydenko said Ukraine faced a "crucial time" and listed her priorities as "strengthening" Ukraine's economy, expanding domestic support programmes and scaling up weapons production. Ukraine's economy has been decimated by the Russian invasion, and Kyiv is reliant on tens of billions of dollars in annual support from Western countries to stay afloat. Both cabinet appointments will require approval by parliament, which has largely coalesced around Zelensky since the invasion and is unlikely to vote against him. "The government needs a change because people are exhausted," said Tymofiy Mylovanov, a former economy minister who worked with Svyrydenko. Mylovanov, who now heads the Kyiv School of Economics , said the changes would likely bring "a sort of freshness" after three and a half years of war. Zelensky said last week he was also considering naming Defence Minister Rustem Umerov as Ukraine's ambassador to Washington. Zelensky met with Umerov over the weekend, after which he said that "Ukraine needs more positive dynamics in relations with the United States and at the same time new steps in managing the defence sector of our state." The appointments come at a pivotal moment in the three-year conflict. Direct peace talks between Russia and Ukraine on ending the fighting have stalled, while the United States announced earlier that it would boost military support for Kyiv in a major about-turn.
