First phase of the Defence Forces of Ukraine transformation: Mykhailo Fedorov on new contracts, recruiting foreign volunteers, and Ukrainian ballistic missiles
The first phase of the Defence Forces of Ukraine transformation has introduced new contracts with clearly defined service durations, guaranteed temporary discharge from military service, and fair remuneration for those serving in the highest-risk roles. Further phases will focus on reforms to the military recruitment and mobilization system.
The new contracts will strengthen the frontline, while those who have served the longest will have a clear understanding of when they may be discharged from military service.
These initiatives aim to make military service more predictable, fair, and motivating, while safeguarding the military’s combat effectiveness and systematically addressing issues that have built up over years of war.
Ukraine’s Minister of Defence Mykhailo Fedorov spoke about this in an interview with TSN.
The key points are summarized below.
Audit unlocked UAH 60 billion to launch the Defence Forces transformation
The first phase of the transformation of the Defence Forces of Ukraine is funded by approximately UAH 60 billion that were unlocked through a large-scale internal audit conducted by the Ministry of Defence. The audit was carried out using a data-driven approach to decision-making.
The first phase of the Defence Forces transformation includes increases in service remuneration. This would not have been possible without the audit, as the Ministry of Defence received no additional funding compared to last year. The transformation is being launched through savings identified by the audit and optimization measures within the Ministry of Defence.
A key cost-saving measure was the introduction of competitive tenders in place of non-transparent procurement practices.
For example, a tender for the procurement of 155 mm artillery ammunition resulted in savings of 16–20% of the contract value, with one supplier lowering its bid by $1,000 per round.
The audit also included an assessment of all brigades against 160 criteria, a review of all expenditure categories, and the creation of a detailed casualty tracking system that records individual combat losses and their causes.
Defence Forces of Ukraine transformation: first phase. Answering the key questions
The highest pay in the world for infantry and assault troops
Ukraine’s military must remain combat-effective, with motivated infantry and assault troops and a steady flow of new personnel to replace those who have served for four years or longer.
The Defence Forces transformation begins by addressing the root of the problem: how to attract more people willing to take on frontline assault roles. Once this challenge is addressed, it will be much easier to build a professional contract-based military.
That is why we have proposed the highest pay in the world for infantry and assault troops. Through my conversations with them, I came to understand that they should be earning significantly more. Under the new system, infantry personnel will receive an average monthly remuneration of UAH 300,000, while assault troops will receive even more, with maximum monthly remuneration reaching UAH 460,000. That is equivalent to just over $10,000.
This is only the beginning, and the Ministry of Defence will continue moving forward. The new infantry-assault, combat, and basic contracts feature clearly defined service durations and a transparent mechanism for calculating periods of temporary discharge from military service.
Foreign volunteers could strengthen our frontline
The new contract system and increased remuneration could further boost interest among foreign volunteers in joining the Defence Forces of Ukraine.
If remuneration increases, it will also help attract more foreign volunteers, who can then strengthen our frontline. They can also reinforce assault units.
Ukraine is already seeing steady interest from foreign volunteers willing to join the fight against russian aggression. Even the current level of remuneration is attracting them.
Thousands of Ukrainians join the military on their own initiative every month
Military reform is one of the most complex reforms any government can undertake. Ukraine is carrying it out while fighting a full-scale war and operating with limited resources. That is why changes to the mobilization and recruitment systems must be implemented in a way that preserves the combat effectiveness of the Defence Forces of Ukraine.
The enemy is making every effort to hinder Ukraine’s mobilization. Despite this, 95% of mobilizations take place without complications, and thousands of Ukrainians join the military on their own initiative. At the same time, there are still issues that can and should be addressed.
We see the conditions in some enlistment offices. We see instances where force is used. No one deserves to be subjected to such treatment. There are many issues that need to be addressed.
These issues must be resolved in a way that prevents mobilized personnel from feeling compelled to go AWOL. The Ministry of Defence’s goal is to fundamentally improve the experience of every mobilized service member.
Returning from AWOL and selecting a unit through Army+ before September 20: a step-by-step guide
Partial discharge of service members to begin in late 2026
Beginning in late 2026, a partial discharge process will start for service members who have been serving since 2022 or earlier. Two criteria will be taken into account: when a service member entered military service and how much time they have spent in combat.
In other words, if a service member has been defending Ukraine since 2022 or earlier and has accumulated a significant number of combat days, they may be discharged under a presidential decree in late 2026.
The sequence of discharges will be determined by the General Staff of the Armed Forces of Ukraine. However, much will depend on the situation on the battlefield and whether russia announces an additional mobilization campaign. Nevertheless, the process will begin so that service members can move forward with their lives.
We will introduce a calculator that will enable every service member to see when they may become eligible for discharge.
Even if a service member signs a new 10- or 24-month contract, they will still be able to leave military service if they become eligible for discharge under a presidential decree, regardless of the service duration specified in the new contract.
Ukraine’s ballistic missile capability could change the course of the war
The deployment of Ukraine’s own ballistic missiles will change both the course of the war and Ukraine’s standing in the world.
Ukrainian ballistic missiles will change everything in this war. They will fundamentally change Ukraine’s standing in the world. We have already changed it many times, but this is an entirely different league. On the one hand, I do not want to raise expectations too high; on the other, I do not want to reveal anything to our enemy. But I can quote our President, who has said that Ukraine will have its own ballistic missiles, and they will strike targets in russia.
Funding for the development of Ukraine’s ballistic missile capability has been secured. As the President of Ukraine has previously noted, advancing ballistic missile production is one of the country’s key security priorities, and Ukraine plans to make regular use of its own ballistic missiles.
Requests to enter into new contracts with the Armed Forces of Ukraine or the State Special Transport Service of Ukraine can now be submitted through Army+