The Rubicon has been crossed: Ukraine is already buying more of its own weapons than foreign ones
27 December 13:25
Ukraine has reached an important milestone in the development of its own defense industry – most of the state defense order is now directed to the domestic market. This is stated in an article by Ekonomichna Pravda, according to Komersant ukrainskyi.
Thus, according to the publication, in 2024, 59% of the amount of contracts signed was for Ukrainian defense companies.
Domestic enterprises have already mastered the serial production of artillery, mortars, certain Soviet-caliber ammunition, some radars, spare parts for military equipment, and electronic components. The dependence on imports in the armored vehicle segment has significantly decreased.
As noted in the article, in the production of drones and electronic warfare equipment, Ukraine has switched to self-sufficiency in most positions.
And in the fall of 2024, the first trial batches of Ukrainian 155-mm NATO-standard shells rolled off the assembly line.
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Internal and external cooperation
The publication emphasizes that in order to further increase production, the Ukrainian defense industry has chosen to cooperate with foreign companies and license the production of Western products. In particular, Ukrainian Armor has signed an agreement with the Czech Czechoslovak Group on the joint production of 155 mm, 120 mm, and 105 mm ammunition. It is planned to ship 100 thousand shells in 2025 and 300 thousand in 2026.
An important factor in the development of the industry was the Zbroyari initiative, under which Western partners allocate funds for weapons production in Ukraine. In 2024, the article says, the government was able to raise $931 million for orders to domestic enterprises. The largest donors were Denmark ($351 million), the United Kingdom ($67 million), Norway ($45 million), and the European Union ($436 million).
The publication notes that the Ukrainian defense industry is actively developing the production of components. In particular, Vyriy drone has launched mass production of parts for FPV drones, having produced hundreds of thousands of units in 2024.
The article emphasizes that Ukrainian companies are also deepening their cooperation with each other. For example, Kvertus and Ukrainian Armor are working together to equip armored vehicles with electronic warfare systems, and the domestic Peklo cruise missile is the product of cooperation between public and private manufacturers.
An important role in the development of the industry is played by the state-owned Brave1 cluster, which collects information about the market and the needs of the military and shares it with manufacturers and investors. According to the publication, the cluster focuses on unmanned systems and electronic warfare, issuing development grants and helping companies with codification.
Prospects and challenges
At the same time, regulatory changes are needed to further the industry’s qualitative leap forward. In particular, manufacturers are asking for the introduction of long-term contracts for two to three years instead of the current practice of concluding agreements “until the end of the year.”
The article also notes that funding remains a “glass ceiling” for defense companies. As new technologies require more investment and government orders remain limited, companies are beginning to consider opportunities to enter the global market, although exports of military equipment are currently prohibited.
The publication emphasizes that arms production has become the only industry in Ukraine that is growing steadily, and this trend is likely to continue in 2025.
