Author: dmitriy.vasyura@gmail.com

A recently signed tax hike and parts of the G7's $50 billion loan will be sufficient to cover Ukraine’s defense expenses included in the 2025 budget, the Finance Ministry said on Dec. 11.

For the next year, Ukraine allocated 26.3% of its gross domestic product (GDP) to defense and security expenditures, including Hr 740 billion ($17.7 billion) for arms purchases and Hr 50 billion ($1.2 billion) on the production and purchase of drones.

Ukraine began actively developing its defense production after Russia's full-scale invasion in February 2022.

To cover the growing defense expenses, Ukraine’s government raised the war tax on personal income from 1.5% to 5% and introduced a war tax on small businesses and individual entrepreneurs.

Separately, the G7's Extraordinary Revenue Acceleration (ERA) initiative is expected to bring an additional $50 billion to Kyiv's coffers. The loan will be covered by proceeds from the roughly $300 billion of frozen Russian assets, which amount to roughly $3 billion annually over 30 years.

The U.S. announced on Dec. 10 the disbursement of $20 billion for Ukraine as part of the loan. The EU is expected to contribute $20 billion, Canada $3.7 billion, and Japan and the U.K. $3 billion each.

Only a part of these funds, namely those provided by the EU and the U.K., can be used directly to cover defense needs.

These funds "will allow to fully finance all planned expenditures of the Defense Forces in 2025,” the ministry said, adding that "meeting the needs of the security and defense sector is an undisputed priority for the Finance Ministry."

Speaking to El Pais, Finance Minister Serhii Marchenko said that Ukraine has enough arms and funds to continue resisting Russia at least until mid-2025 and possibly longer if U.S. President-elect Donald Trump cuts support after taking office.

US announces $20 billion loan for Ukraine as part of G7 initiativeThe U.S. Treasury Department announced on Dec. 10 that it will provide $20 billion in loan assistance to Ukraine, marking its contribution to a broader $50 billion initiative supported by G7 countries.The Kyiv IndependentTim Zadorozhnyy

Ukraine has struck six US ATACMS missiles at a military airfield in Taganrog. According to the russian defence ministry, two missiles were shot down, the rest were deflected, and there were casualties among the personnel.

The rf Ministry of defense said the morning missile attack on the military airfield in Taganrog, using U.S. missiles “ATACMS”. According to the ministry, some of the missiles seem to have been shot down and deflected by air defense facilities, writes UNN.

“On the morning of December 11, 2024, the Kiev regime launched a missile strike with Western precision-guided weapons on the military airfield of Taganrog in the Rostov region. In the course of the conducted proceedings, it was reliably established that six American-made ATACMS ballistic missiles were used,” the rf defense ministry wrote.

They claim that allegedly two missiles were shot down by the combat formation of the Pantsir SAM system, while the rest were deflected by electronic warfare equipment.

The Russians also say that there are casualties among the personnel as a result of the missile fragments. There was allegedly no damage, but two buildings on the technical territory of the airfield and three units of military vehicles, as well as civilian cars in the parking lot adjacent to the airfield, were slightly damaged (cut by shrapnel).

And traditionally, the rf has threatened that this attack by western long range weapons will not go unanswered, appropriate measures will be taken.

Recall

In the Russian city of Taganrog in the Rostov region on the night of December 11, an aircraft repair plant was attacked which is under sanctions because of the war in Ukraine.

Ukraine has enough funds and ammunition to continue resisting Russia at least throughout the first half of 2025, even if U.S. assistance dries up, Finance Minister Serhii Marchenko said in an interview with the El Pais newspaper published on Dec. 11.

Marchenko's comments come amid growing concern that U.S. President-elect Donald Trump might withdraw Washington's crucial support for Kyiv after he takes office in January.

"I believe that we have enough funds, enough weapons, missiles, and artillery shells to resist at least during the first half of 2025," Marchenko said. Ukraine is allocating necessary funds from its budget to purchase equipment and continues to receive U.S. arms, the minister explained.

"This means that at least during the first half of the year and beyond, we will be well-equipped to resist this aggression," he added.

The outgoing Biden administration has accelerated its weapons deliveries ahead of Trump's inauguration, announcing an arms package worth nearly $1 billion on Dec. 7. Washington has provided Ukraine with over $60 billion in arms and equipment since the outbreak of the full-scale war, making it by far the most important military donor.

The flow of supplies may soon dry up, as Trump recently said that Kyiv could expect a reduction of U.S. assistance after he takes office.

Marchenko noted that the possibility of Trump cutting aid is a "challenge." It is, therefore, in Kyiv's interest to "create the necessary conditions" for cooperation with the new administration, he added.

"We want to build a good relationship," Marchenko said.

President Volodymyr Zelensky met Trump in Paris on Dec. 7 for the first time since the latter's reelection. Reuters wrote that the two did not discuss the specifics of any concrete peace plan, but the Ukrainian president stressed the need for security guarantees.

Marchenko expressed his belief that full NATO membership remains the best possible guarantee to deter Russian aggression, with the "modern and strong Ukrainian military" as the only alternative.

US announces $20 billion loan for Ukraine as part of G7 initiativeThe U.S. Treasury Department announced on Dec. 10 that it will provide $20 billion in loan assistance to Ukraine, marking its contribution to a broader $50 billion initiative supported by G7 countries.The Kyiv IndependentTim Zadorozhnyy

Drones of the Ukrainian Defence Intelligence and the Ukrainian Defense Forces attacked an oil depot in the Bryansk region of Russia on the night of December 11. The attack damaged at least two tanks at the facility, which supplies fuel to the Russian army.

On the night of December 11, drones of the Defence Intelligence of Ukraine and the Ukrainian Defense Forces attacked a fuel and energy complex in the Bryansk region of Russia. As a result of the attack, at least two tanks of the fuel and energy complex were damaged. This was reported to UNN by intelligence sources.

According to intelligence sources, the attack on the Bryanskaya oil depot took place between 00:00 and 00:30 on December 11.

According to a source in the DIU, at least two tanks of the fuel and energy complex were damaged as a result of the attack by “restless birds”.

The Defense Forces emphasize that this facility is directly involved in supporting Russian aggression against Ukraine, including the supply of fuel and lubricants to the occupation army.

The results of the attack, including the pre-Christmas fireworks at the oil depot, are shared with enthusiasm by the local population on social media.

The General Staff confirmed the defeat of the Russian oil depot in the Bryansk regionDec 11 2024, 08:09 AM • 13189 views