Ukrainian defense industry has grown 50 times: defense industry enters technological breakthrough phase

Ukraine’s defense-industrial complex has undergone a radical transformation in recent years, transforming from a crisis sector into one of the key drivers of the economy. According to estimates, the industry has grown 50 times compared to the beginning of the full-scale invasion, when production was only about $1 billion.

This was stated by Danylo Getmantsev, Chairman of the Verkhovna Rada Committee on Financial, Tax and Customs Policy, emphasizing the unprecedented scaling of the sector during the Great War.

According to him, the defense industry has actually moved from the category of backward industries to the status of the technological core of the national economy. Such dynamics became possible due to the rapid adaptation of enterprises to wartime conditions and the growth of domestic demand for weapons.

The special Defense City regime, which was created to support defense enterprises, plays a key role in development. At the same time, as noted, the current model requires further improvement to meet the real needs of the market and the growth rates of the industry.

Among the priority changes, business and experts highlight the reduction of barriers for new companies to enter the Defence City regime, which will simplify access to state support and stimulate competition in the sector.

The need to expand the circle of program participants by attracting private manufacturers is also emphasized, which will allow scaling production capacities and accelerating the development of the industry.

The issue of introducing new incentives for enterprises, in particular for design bureaus and production sites that are working on launching new defense projects, is separately considered.

An important component of the industry's development is the strategy of technological sovereignty. It involves the transition from simple repair and maintenance of foreign weapons systems to their full assembly in Ukraine, and later - to modernization and creation of our own unique models.

No less critical are personnel challenges and financing issues. In particular, this concerns the expansion of credit programs and the reduction of the cost of loans through state mechanisms, which should allow Ukrainian manufacturers to compete internationally as full-fledged suppliers of comprehensive defense solutions.