The defense sector of Ukraine is demonstrating dynamic growth and forming a technological advantage in its confrontation with the Russian Federation. Over the past three years, the country’s defense sector has increased its capabilities by 35 times. Currently, there are about 900 enterprises and more than 1,000 innovative teams operating in the industry.
This is reported by Business • Media
Advantages of the Ukrainian Defense Industry: Human Capital and Innovations
The state is actively investing in the development of human capital, ensuring the training of new specialists. According to Defense Minister Denys Shmyhal, the creation of a network of effective solutions and a strong industrial production base allows Ukraine to strengthen its technological positions on the front. He urged weapon manufacturers to jointly invest with the government in higher education institutions, weapon laboratories, and to establish new scholarships for promising specialists.
“Of the 900 companies in the defense sector, over 800 are private manufacturers,” he noted.
State Support and New Opportunities for Manufacturers
In Ukraine, a foundation is being formed for long-term state contracts lasting 3-5 years, which will promote stability in the sector and allow enterprises to plan for development. To support weapon manufacturers, preferential loans are already in place: up to 100 million UAH for working capital and up to 500 million UAH for investment projects. To date, loans amounting to 2.7 billion UAH have been issued. Additionally, grants of up to 8 million UAH are allocated for companies working in the field of drone production, robotic systems, and electronic warfare means.
Ukrainian arms manufacturers have the opportunity to expand production and localize it within the Build in Ukraine model. Furthermore, Defence City is being created – a special legal mechanism for weapon manufacturers that provides for the possibility of controlled exports.