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US to Provide $1.6 Billion for Kyiv’s Long-Range Arms Production

(Bloomberg) -- Ukraine expects to receive $1.6 billion from the US to finance domestic production of long-range weapons, boosting the country’s ability to strike military targets in Russia, President Volodymyr Zelenskiy said. 

An $800-million tranche to fund the domestic production of drones will arrive in “coming days” and will be followed by the second disbursement of $700 million to $800 million, Zelenskiy told journalists on Monday in Kyiv after meeting US Defense Secretary Lloyd Austin. 

While Ukraine already uses its own long-range drones to attack military targets in Russia, it keeps pushing partners for permission to use western-made weapons in these strikes. These include sites from which Russia has launched missile strikes on Ukraine’s energy, critical infrastructure and civilians, as Moscow’s troops slowly advance in the country’s east. 

Kyiv’s allies have so far been reluctant to give that permission. US officials have previously raised concerns about escalation as well as Ukraine’s limited supply of US-made long-range missiles. They also pointed to Ukraine’s success in using its own drones to hit targets deep inside Russia.

A final decision on long-range strikes is now in the hands of western leaders, said people with knowledge of the matter.

Ukraine is eager to ramp up its own arms production due to fears that it may no longer be able to count on foreign weapons supplies. Some backers are struggling to secure funding — and others the political will — to provide further military assistance to Ukraine, Bloomberg reported last month. 

Domestic production is part of Zelenskiy’s so-called victory plan, alongside securing an invitation to NATO. On that point, Ukraine and some of its allies believe US President Joe Biden could be bolder after next month’s elections, according to people familiar with matter.

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“Today, we see the consensus of the majority of the alliance’s countries and the restrained position of a few countries,” Zelenskiy said. The president added that he was optimistic about British, French and Italian support. Germany’s would require “work” but US influence may play a positive role, said Zelenskiy.

The president hopes for Ukraine to be invited to join NATO within its internationally recognized borders. He said western partners hadn’t raised with him the possibility of Ukraine joining the alliance without Russian occupied-territories.

However, Zelenskiy said media reports based on anonymous sources show that “some partners may think in that direction” and also indicate that they are “are testing the waters.”

“It is a fundamental thing for me: to receive an invitation during the war,” Zelenskiy said. “Joining and how it will happen is the next step and there could be different formats.”

Russia’s stance on negotiations will depend on the US elections, Zelenskiy said. He told reporters that he expects some quick decisions from Washington after the vote. “I think they won’t wait until January,” he said without elaborating. 

--With assistance from Natalia Drozdiak.

©2024 Bloomberg L.P.