The funding for the development of Ukraine’s defense industry (DI) has increased more than ninefold during the years of full-scale war. In 2022, 2.5 billion hryvnias were allocated for the needs of the DI, but after adjustments, this amount increased to 7.7 billion hryvnias. In 2023, about 12 billion hryvnias were directed towards the development of the sector, and in 2024, the budget amounted to 39.6 billion hryvnias. The state budget for 2025 initially allocated 54.6 billion hryvnias, but after adjustments, funding rose to 84.5 billion hryvnias — a record high for all the years of the war. For 2026, 44.4 billion hryvnias are already earmarked for the development of the defense sector.
This is reported by Business • Media
Expansion of Production Capacities and Engineering Potential
Since 2022, Ukraine’s defense industry has increased its production capabilities by 35 times, reaching a level of 35 billion dollars. Today, the domestic defense ecosystem comprises approximately 900 enterprises, of which about 100 are state-owned and the rest are private. In addition, over a thousand teams of engineers and developers are working daily on implementing innovative solutions to strengthen the country’s defense capabilities.
Innovations in the Production of Missiles and Drones
“The production of Ukrainian missiles and drones has reached a new level. Among the top three are the cruise missile ‘Flamingo’ with a range of 3,000 km, the cruise missile ‘Long Neptune’ with a range of 1,000 km, and the drone missile ‘Hell’, capable of flying at speeds of up to 700 km/h. This was preceded by the creation of the drone missile ‘Palyanytsia’ (with a warhead weight of about 100 kg). Both developments are in serial production.”
The Ukrainian DI is actively developing technologies for long-range drones and produces about 4 million drones of various types each year. Estimates suggest that production capacities could double these volumes. Additionally, the output of the 155 mm self-propelled artillery systems ‘Bohdana’ has significantly increased: while 6 SPGs were produced monthly in December 2023, by October 2025, this figure had risen to 40 units.
More than 40% of the weapons used on the front lines are produced in Ukraine. However, the state is actively creating joint productions with international partners and attracting investments to expand capacities. Currently, 25 foreign companies are at various stages of localizing production in Ukraine.