Ukraine

The nation’s military expenditure was increased again in 2014, when the Crimean crisis began. In 2014, the defence budget of Ukraine was increased by some 13.4 billion UAH (approximately 447 US$ million), reaching 27 billion UAH (approximately 1.2 US$ billion).  This increasing trend continued in 2015, when the defence budget amounted to 46.7 billion UAH (almost 1.8 US$ billion).

After the dissolution of the Soviet Union and declaration of its independence in 1991, Ukraine inherited one of the most powerful Armed Forces in Europe, equipped with nuclear weapons and modern types of typical armament and defence technology. It is indicative that the country inherited a rocket army, three regular armies and two tank armies, one army corps, four Air Force armies, a separate Air Defence army and the Black Sea fleet.
 
In 1992, the Lisbon Protocol was signed by Ukraine, the Republic of Belarus, the Republic of Kazakhstan, the Russian Federation and the United States of America. Its main goal was the reduction and limitation of strategic offensive arms with a focus on nuclear weapons. According to ARTICLE V Ukraine had to adhere the Treaty on the Non-Proliferation of Nuclear Weapons in the shortest possible time. In 2002, Ukraine also signed with NATO the NATO-Ukraine Action Plan aiming to a more extensive cooperation with the organization.
 
Overall, Ukraine had to diminish the number of its armed forces as it was rather difficult and costly to maintain them. Part of this process also included the modernization of the army. For the period 2006-2011, Ukraine implemented the “State Programme of Armed Forces’ Development 2006-2011” modernization program, initially to be financed by the amount of UAH 55.5 billion (2.10 US$ billion dollars), which were actually superseded already by 2010 according to the Ukrainian Ministry of Defence, due to the  decreased  pace  of implementation of the State Programme, which broke the sequence of events and led to the increase in costs of the related activities (reaching UAH 58 Billion, by 2010).
 
Nevertheless, the nation’s military expenditure was increased again in 2014, when the Crimean crisis began. In 2014, the defence budget of Ukraine was increased by some 13.4 billion UAH (approximately 447 US$ million), reaching 27 billion UAH (approximately 1.2 US$ billion).  This increasing trend continued in 2015, when the defence budget amounted to 46.7 billion UAH (almost 1.8 US$ billion).

The allocated funds in the 2015 Defence Budget, were directed towards the following areas:

  • Maintenance of the capabilities of the armed forces - about UAH 36.9 billion (approximately 1.4 US$ billion) corresponding to 74.9% of the total budget;
  • Training of the armed forces – about UAH 2.08 billion (approximately 79 $US million) corresponding to 4.2% of the total budget;
  • Acquisition of new armaments and materiel – about UAH 10.3 billion (approximately 390 US$ million) corresponding to 20.9% of the total budget.

As it is clearly depicted in the diagram above, expenditure is mainly focused on supporting personnel and making only ‘urgent’ steps to restore the technical readiness of military materiel and armaments.

As of 2015 the Ukrainian army totalled 250,000 personnel (204,000 military personnel and 46,000 administrative staff), increased by 85.000 compared to 2013 (120,900 military personnel and 44,600 administrative staff).

 

2012

2013

2014

2015

Military Personnel

139,000

120,900

204,000

204,000

Administrative Staff

45,000

44,600

46,000

46,000

Total

184,000

165,500

250,000

250,000

Source: http://www.mil.gov.ua/en/

During 2014, Ukraine acquired a variety of defence equipment. For the Land Forces the country, among others acquired the following:

  • 9 “Bulat” tanks  
  • 18 2S1 SP vehicles
  • 12 BTR4 APCs
  • 20 BTR3 APCs
  • 70 KRAZ63221, 6322, 6446 vehicles
  • 30 KRAZSPARTAN special armoured vehicles

For the Air Force Ukraine acquired:

  • 1 Su-25UBM1 aircraft
  • 3 Su-25UM1 aircraft
  • 1 Mi-24PU1 combat aircraft
  • 3 Мі8МSBV landing transport aircraft

During 2015 Ukraine continued acquiring defence equipment with a focus on the Air Force.

For the Land Forces the country, among others acquired the following:

  • 2 BREM-4RN armoured repair-evacuation vehicles
  • 4 BMM-1C armoured sanitary-evacuation vehicles
  • 140 КМ machine gun 7,62mm
  • 30 “Stuhna-P” portable antitank missile complex
  • 507 RК-2С antitank guided missiles
  • 380 “Combat” – missile guided shot

For the Air Force Ukraine acquired in 2015, the following main items:

  • 4 Mi-2 helicopters
  • 4 Mi-8MSB-B landing transport helicopters
  • 10 UAVs with their ground stations (of the "Furiya”, “Fly Eye” and “Spay Arrow” types)

As for the future, in 2017, the Defence Budget will be increased to UAH 129 billion, around 4.9 $US billion, representing more than 5% of the GDP, UAH 14.5 billion more than 2016, when it was UAH 114 billion, in other words around 4.3 US$ billion. According to Ukraine’s Ministry of Defence, the country plans to use these additional funds to reform the Armed Forces. The changes that will be applied are related to the establishment of an efficient integrated management system, the improvement of the system of defence planning and resources administration, of the capability to fulfil tasks assigned, the formation of a single logistics system for all the branches, the improvement of the system of medical support and the professionalization of the Armed Forces of the country.

Within the same frame and with a focus on national security, Ukraine has strengthened in recent times its defence ties with, among others, Latvia, Japan, Italy and the UK, through establishing respective defence agreements (e.g. with the UK), or by holding meetings with respective delegations.