Ukraine is launching a joint weapons production program with members of the Ukraine Defense Contact Group (UDCG), or Ramstein summit participants, Defense Minister Rustem Umerov announced on July 1.

The UDCG was formed in 2022 under former U.S. President Joe Biden to coordinate military assistance for Ukraine among about 50 of Kyiv's allies.

As part of a new joint production program, new factories and weapons manufacturing facilities will be built in Ukraine and abroad, Umerov said in a social media post. The international sites will be UDCG member countries participating in the Ramstein-format summit.

New legal and tax regulations will also be put in place for Ukrainian weapons manufacturers, facilitating the construction of new sites and allowing them to rapidly scale up production, Umerov said.

The Defense Ministry on July 1 joined the Verkhovna Rada (Ukraine's parliament) Finance, Tax, and Customs Committee in presenting four draft laws regarding domestic weapons production "aimed at developing the industry." The legislation introduces amendments to tax, customs, and budget regulations, as well as the Criminal Code.

The first vote on the new legislative package is expected to take place in a month, according to Umerov.  

"This is a new type of military-industrial cooperation, where Ukraine is an equal partner and player in the global defense market," he said.

As Ukraine scales up domestic defense production, President Volodymyr Zelensky has been lobbying foreign partners to provide funding to help match its manufacturing capacity. At the NATO summit in The Hague, Ukraine signed agreements on joint weapons production with the U.K. and Denmark. Norway also pledged to jointly develop air defense systems with Kyiv.

Ukraine boosted electricity exports by 150% in June 2025 compared to the previous month, reaching over 237,000 megawatt-hours (MWh), according to consulting firm ExPro Electricity.

Current export volumes have returned to autumn 2022 levels, before Russia launched systematic attacks against Ukraine's energy infrastructure that caused massive blackouts across the country.

This marks Ukraine's return to exporting more electricity than it imports for the first time since October 2023, ExPro analysis reports.

Electricity cannot be stored in large volumes for long periods, so it can be exported during certain hours when there is surplus in Ukraine’s energy system, and imported during deficit hours.

Hungary imported the majority of Ukrainian exports, with shipments jumping from 34,000 to 122,000 MWh in a single month.

The recovery represents a dramatic turnaround from June 2024, when Ukraine had no exports at all and imported 858,000 MWh, four times more than in June 2025.

Russia continues to target Ukraine's energy infrastructure, with the latest strike hitting a critical energy facility in Kherson Oblast on June 27 that caused widespread blackouts across multiple communities.

Governor Oleksandr Prokudin warned residents to prepare for prolonged outages as power engineers work to restore electricity, saying "Russia decided to plunge Kherson Oblast into darkness."

In February 2025, Emergency energy power shutdowns were introduced in eight Ukrainian oblasts due to Russian attacks on the country's energy system.

‘With surgical precision’ — Ukrainian drones strike Russian plant 1,300 km away, SBU source says

The SBU said its long-range drones targeted the Kupol plant in Russia’s Udmurt Republic on the morning of July 1, resulting in at least two confirmed strikes and a fire at the site.

The Kyiv IndependentAnna Fratsyvir

Ukraine received approximately $500 million from the International Monetary Fund (IMF), marking the ninth tranche under the Extended Fund Facility program, the Finance Ministry announced in a press release on July 1.

The EFF Program has allocated $15.5 billion to Ukraine in budget support over a four-year period. The program has now delivered $10.6 billion to Ukraine since it began in 2023.

"In total, during the full-scale war, $13.3 billion in financial assistance from the Fund has been received by the state budget," Finance Minister Serhii Marchenko said in a press release.

According to the IMF, Ukraine successfully met all quantitative performance criteria through March 2025, including the prior action to submit a detailed reform plan for the State Customs Service (SCS).

The IMF extended deadlines for several Ukrainian reforms, including appointing a new customs chief.

First Deputy Managing Director of the IMF, Gita Gopinath, said that Ukraine must continue anti-corruption reforms, including appointing a new head of the Economic Security Bureau and strengthening money laundering rules.

The IMF kept its 2025 growth forecast for Ukraine at 2-3%, as improved electricity supply is balanced by reduced gas output and weaker agricultural exports.

The international body expects inflation to reach 9% by year-end and recommended that Ukraine's central bank maintain tight monetary policy, warning it should "stand ready for further tightening" if inflationary expectations worsen.

"The economy has remained resilient, but the war is weighing on the outlook, with growth tempered by labor market strains and damage to energy infrastructure," Gopinath said in a statement.

The next program review is scheduled for mid-September 2025, with an IMF mission expected to visit Ukraine in August to assess progress on reform commitments.

‘With surgical precision’ — Ukrainian drones strike Russian plant 1,300 km away, SBU source says

The SBU said its long-range drones targeted the Kupol plant in Russia’s Udmurt Republic on the morning of July 1, resulting in at least two confirmed strikes and a fire at the site.

The Kyiv IndependentAnna Fratsyvir

Ukraine's defense technology cluster Brave1 has launched the development of anti-drone rifle rounds, significantly increasing the chances of hitting fast-moving aerial targets, the group said in a statement on June 30.

According to Brave1, the ammunition appears similar to standard rounds used in automatic rifles but features a specially designed warhead that increases the likelihood of shooting down FPV (first-person-view) drones or commercial quadcopters such as the DJI Mavic before they strike.

These types of drones are being used extensively on the battlefield by both Ukrainian and Russian forces. The cost-effective FPV drones have proven highly effective in destroying expensive military equipment.

The manufacturer has already codified the new rounds according to NATO standards, Brave1 said. The goal is to supply every infantry soldier with a magazine of specialized ammunition for use in case of aerial threats.

"These rounds that significantly improve the chances of hitting a moving target are a new development by Brave1," Digital Transformation Minister Mykhailo Fedorov said.

"Our common goal is to ensure that every infantryman has a magazine of such ammunition and can equip his rifle with it in case of an air threat."

Ukraine continues to scale up its drone warfare capabilities. The Defense Ministry said on March 10 that it plans to purchase 4.5 million FPV drones in 2025 at a cost exceeding Hr 110 billion ($2.6 billion), with most of the funds allocated through the Defense Procurement Agency.

President Volodymyr Zelensky has set a goal of producing at least 30,000 long-range drones in 2025.

Tired of military aid delays, Ukraine has designed its own ballistic missile — and it’s already in mass-production

Ukraine announced on June 13 that its short-range Sapsan ballistic missile would go into mass production, a major development in Kyiv’s ongoing efforts to domestically produce the weapons it needs to fight Russia’s full-scale invasion. As Ukraine faces growing challenges in securing weapons from Western partners, and Russia continues launching

The Kyiv IndependentYuliia Taradiuk