Zelenskyy: Long-range weapons key to Ukraine’s independence

Ukraine and eight partner countries are set to sign a deal to establish the Canada-led Defense, Security and Resilience Bank (DSRB) on November 30, potentially providing a new source of long-term financing for weapons production, according to a joint statement released on October 29. The bank, which aims to commence operations in 2027, will assist governments in funding their defense requirements and enable manufacturers to expand production, with benefits contingent upon their involvement in the institution.

As Russia's prolonged war continues, Ukraine requires consistent funding to maintain its military's supply. The proposed bank could offer allies an alternative means of financing Ukraine's defense over the long term, supporting weapons production and military acquisitions. Canadian Finance Minister Francois-Philippe Champagne announced on October 26 that the bank would be headquartered in Canada, with an additional European hub in Luxembourg.

Its mandate would encompass industrial expansion, critical supply chains, and eligible procurement, including addressing funding gaps faced by smaller defense companies. While Reuters reported in August that the project aimed to attract approximately 100 billion euros ($111.3 billion), with 20 billion euros ($22.3 billion) paid upfront and the remaining 80 billion euros ($89 billion) callable from members if necessary, the latest official statements do not specify a capital target or reveal funding earmarked for Ukraine.

President Volodymyr Zelensky confirmed Canada's invitation for Ukraine to become a founding member of the bank in July during discussions with Canadian Prime Minister Mark Carney. In a Telegram post, Zelensky stated that the bank would work to attract capital and develop defense-industrial capacity and technologies proven in real combat conditions.

The November signing will mark another milestone towards the bank's establishment, rather than the initiation of lending activities.