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Ukraine's Defense Procurement Agency (DPA) signed contracts worth Hr 158 billion ($3.8 billion) more with domestic weapons manufacturers in the first six months of 2025 compared to the same period last year, the country's Defense Ministry announced on July 28.

Ukraine's Defense Procurement Agency operated with an annual budget of Hr 306.1 billion ($7.62 billion) in 2024, according to former agency director Maryna Bezrukova. The agency funded contracts with 155 Ukrainian manufacturers throughout the year.

Ukraine aims to evolve into a defense technology center, accelerating military production amid the ongoing Russia-Ukraine War.

The increase elevated the share of domestically-produced arms and equipment in total AOZ procurement to 71.4% for January-July 2025, up from 44.1% during the same six-month period in 2024.

Based on the Defense Ministry's statement, unmanned systems drive much of this shift, with 95% of drone purchases now sourced domestically within Ukraine.


According to President Volodymyr Zelensky, domestically-manufactured weapons now comprise more than 40% of the total used by Ukraine.

Ukraine is currently seeking additional financing to enhance its military manufacturing capabilities, achieving considerable advances in drone technology.

Speaking to reporters in Kyiv on July 24, Zelensky indicated that domestic military production requires $25 billion annually to function effectively, and he is actively coordinating with Western allies to secure this funding.