Центр воєнної політики та політики безпеки

Informational – analytic review of defense news by Defense and Security Policy Center

1. Defence Planning: Financing of the Armed Forces in 2010
On December 11, Ukrainian Prime Minister U. Timoshenko during celebrating the Ground Forces day in the national officers club made it known that since next year, the Government will cease a financing of Defence budget by using margins from a special fund.

Comment: in accordance with 2009 State budget the MOD debit was planned of around 11,6 bln UAH, where 4,2 bln UAH are proceeds from special fund capitals. Over eleven months of this year special fund has been filled out less than 10% of what was planned. A long practice proved that no expectations to make it more then 1 bln UAH in the future. None of European militaries have a split budget but are being financed solely from a general fund. According to Prime Minister, Ukrainian Government stands to close down, since next January, a using of special fund as a part of military budgeting.

Informational – analytic review of defense news by Defense and Security Policy Center

1. Defence Policy: Financing of the Armed Forces

In this early December the President of Ukraine V. Yushenko by his decree № 1000/2009 has brought into effect a National Security council resolution “On emergency measures for crisis overcome in Armed Forces” dated form 20^th November 2009.

Comment: National Security Council has appraised a financing support of the UAF in 2009 as too insufficient. Bolstering defence capability, Council is encouraging financing increase in 2009 for primary tasks implementation: 112,6 mln UAH come for a restoration of Joint Rapid Reaction Forces emergency storage; 24,7 mln UAH will be allocated for immediate training arrangements of fighter pilots. Additional 698,6 mln UAH to be taken from Stabilization Fund and will directly be invested in as following: 60 mln UAH to recover 12 Mi-8 and Mi-24 helicopters. Rest of 638,6 mln UAH will be disbursed for a completion of outstanding developmental works of multifunction AD missile system, “corvette”-type advanced vessel, An-70 transport aircraft, Mi-24 helicopter upgrade and partially to procure the “Oplot” MBT for UAF forward use.