2024 was the third year of full-scale war and the eleventh year of fighting Russian aggression. Despite the war, Ukraine continues strengthening its defense, reforming the army, and working on European integration.
The main events of the year that affected the security and defense sector:
The new Minister of Defense is Rustem Umierov
In his first year in office, the minister paid attention to the fight against corruption, which helped to avoid high-profile scandals, as was the case under the previous leadership. This also launched important changes in healthcare, digitization, and the reduction of paper documentation.
However, the reforms looked disjointed due to the lack of a clear plan. There were problems with mobilization, personnel, and the purchase of military equipment. In addition, things did not always go well in the ministry's coordination work, which affected cooperation with other countries. The NAKO review provides more details.
Parliament's work in the security and defense sector
In 2024, the Verkhovna Rada focused more on responding to problems than anticipating their manifestation. Some important issues, such as the length of service of the mobilized, have not been resolved.
Changes to Ukraine's legislation are among the most important changes supported by the Parliament regarding certain issues of military service, mobilization, and military registration. These changes oblige updating data, carrying military registration documents, changing the procedure for notifying conscripts, and introducing basic military training, among other things.
It is also possible to single out the adoption of the Law of Ukraine on February 22, 2024, "On Amendments to Some Legislative Acts of Ukraine Regarding Improvement of Corporate Governance." This law specified the distribution of powers between the management bodies of enterprises and introduced the State Property Policy.
Also, within the framework of parliamentary control, temporary investigative commissions submitted reports on the following:
- Vuse of international aid during martial law.
- Compliance with legislation during public procurement.
- Allocation of budget funds for constructing fortifications, purchasing drones, and means of radio-electronic warfare.
For 2025, the main tasks remain strengthening parliamentary control and restoring the specialized committee's influence to formulate a comprehensive defense policy.
Development of the defense industry
More than 800 companies provide army work in Ukraine's defense industry. In the words of Prime Minister Denys Shmyhal: "In the drone segment, domestic production accounts for more than 96%, more than 1.2 million drones were purchased through the "Army of Drones" project. The missile program has advanced significantly, and Ukrainian long-range weapons have been created."
JSC "Ukrainian Defense Industry" continues to implement corporate governance standards. As of September 2024, 42 enterprises have already been transformed into economic companies (LLC and JSC), 14 of which are in 2024. Read more about corporatization in the defense sector in the NAKO publication.
Implementing the "Defense tech cluster BRAVE 1" project — an innovative cluster for developing military technologies in Ukraine — was also continued. The initiative is implemented in cooperation with the Ministry of Digital Transformation, the Ministry of Defense, the General Staff of the Armed Forces, the National Security Council, the Ministry of Strategic Industries, and the Ministry of Economy of Ukraine. The main activities of the cluster include developing systems and means of destruction, unmanned aerial vehicles and ammunition, demining technologies, and cyber security.
According to the report for the three quarters of 2024, developers of domestic defense technologies attracted more than $25 million of foreign investments, five times more than in 2023. In addition, grant support for Ukrainian developers has been updated: the amount of grants now varies from 500 thousand to 2 million hryvnias, which promotes the more active development of promising projects in the field of defense technologies.
The publications of the Deputy Minister of Defense of Ukraine provide more information about the results of the development of the Ukrainian defense and industrial complex.
Sanction policy against the Russian Federation.
During the 1000 days of the war, significant results in the sanctions policy were possible. One key achievement was the EU oil embargo, significantly reducing Russia's oil exports income. Lists of critical components for the Russian military-industrial complex subject to enhanced export controls were also introduced.
At the same time, significant gaps remain in the effectiveness of sanctions. Some countries continue to depend on Russian oil, making it difficult to enforce the restrictions. Russia actively uses the "shadow fleet" to circumvent sanctions. In addition, international companies continue to work on the territory of the Russian Federation, which undermines the overall effectiveness of the sanctions policy. More details — in review AFTER.
Security agreements of Ukraine: support and strengthening of defense during war
For 2024, Ukraine concluded 27 security agreements with various states, including the G7 countries, the European Union, and other partners. These agreements provide military, financial, and humanitarian assistance and cooperation in defense technology. In particular, agreements with the USA and Japan confirm their support for Ukraine's sovereignty and territorial integrity and readiness to provide long-term assistance to strengthen the defense potential. A detailed analysis of the consequences of these agreements will be provided in the NAKO expert review.
Scandals in the defense sector
At the end of 2024, several high-profile scandals occurred in Ukraine's defense sector. One is the non-transparent ammunition procurement for the State Border Service of Ukraine (SPSU). The Cabinet of Ministers allocated 23 billion hryvnias for these purchases by engaging an unreliable intermediary who demanded full payment in advance. Quick decision-making, cooperation with an intermediary firm, and ignoring existing procurement mechanisms through the Defense Procurement Agency or JSC "Ukrainian Defense Industry" called into question the transparency and efficiency of this process.
Another problem was the low quality of Ukrainian mines for the Armed Forces of Ukraine. Defects of 120-mm and 82-mm mines – deviations from the target, non-emissions, non-ruptures, and after-burning of gunpowder in the barrel, testify to the shortcomings of technological production and weak quality control on the part of the military representatives of the Ministry of Defense—more information – in NAKO publications.
Changes have also occurred in the Ministry of Defense's centralized procurement, which has caused concern among experts. They were created in October 2024, and the supervisory boards for the Defense Procurement Agency and the State Rear Operator were created for the participation of international partners. Still, already, in December statutes, these enterprises were changed. Innovations allow the Ministry of Defense to change managers directly and give mandatory instructions, contrary to the OECD Guidelines, NATO standards, and Ukrainian legislation.
These events point to serious problems in the defense sector that require urgent solutions. The lack of a systematic approach and a clear vision of reform priorities leads to situations where even promising initiatives turn into chaotic "firefighting." Under the current conditions, Ukraine must demonstrate determination to solve internal problems to strengthen its defense capabilities and the trust of international partners.