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27 November, 2021
Ukraine is losing its traditional arms markets. A breakthrough is needed.
The share of private companies performing the State Defence Order is growing. While it was 23% five years ago, this year it has reached 54%. Private manufacturers are more flexible compared to state enterprises, they offer more innovations and actively enter international markets.
This was explained by Andrii Muravskyi, Communications and Advocacy Officer at the Independent Anti-Corruption Commission (NAKO), in his comment for Fokus media.

“However, state-controlled enterprises managed through Ukroboronprom, th eMinistry for Strategic Industries, or the Space Agency continue playing the leading role in the Ukrainian defence industry,” he noted. Among the companies most important for the country, he mentioned a number of factories such as Malyshev, Promin, Antonov, and Ivchenko-Progres. 

Even though the State Defence Order has been growing in recent years, the Ukrainian defence industry keeps going mostly due to exports, which account for  75% of its income. For example, in 2019, Ukroboronprom made UAH 23.4 billion on exports and UAH 7.5 billion on state contracts.  That said, only 21 out of its 118 enterprises are making a profit, while 21 enterprises are located in the temporarily occupied territories.

For further detail, see the publication “Arms Market: Who is the Leading Seller of Military Equipment in Ukraine and How Much We Earn on This.”