Ukraine’s parliament changes how military budget is cleared, and freezes money behind one of war’s cleverest supply schemes, defense-industry council says

Ukraine's parliament recently altered its legislation, disrupting the flow of funds to one of the war's most innovative supply systems: the eBaly program. This scheme permits military units to earn points for confirmed strikes on Russian targets, which can then be exchanged for Ukrainian-made drones and other equipment. According to Ihor Fedirko, who heads the Ukrainian Council of Defense Industry, a growing number of Ukrainian firms are owed between $540,000 and several million dollars each, as they have not received payments for equipment delivered and paid for later.

The freeze on payments to these companies is significant, as eBaly has seen the delivery of over 181,000 drones, robots, and electronic-warfare systems in 2026, with units consistently ordering and receiving high-performing gear during combat. The Ukrainian Council of Defense Industry, comprising more than 300 private manufacturers and key associations of Ukraine's defense-industrial sector, is responsible for managing the program.

However, the recent budget changes have now mandated that the Defense Ministry and the state communications service share of Ukraine's military income tax must be approved by the Ukrainian National Security Committee. This committee now vetoes individual payments and deliveries, rather than the general direction of spending. The reasons behind the delays in obtaining signatures on committee decisions and the factors hindering swift decision-making remain unclear.

Small defense companies, in particular, are struggling to cope with the cash flow gaps, as the delayed payments are meant to cover wages, purchase components, and fund subsequent production runs.