The Federation of Employers of Ukraine (FPU) has expressed concern about the critical state of the Ukrainian defense industry. According to them, the sector is on the brink of a serious crisis due to underutilization caused by insufficient government procurement due to a lack of budget funds and the inability to export products.
This is reported by Business • Media
As a result, companies are forced to consider options for halting production or relocating abroad. Such decisions could lead to the loss of important technologies, skilled personnel, and investments, which would negatively impact the future of the industry.
The Importance of Export for Foreign Companies
It has been noted that for foreign companies collaborating with Ukrainian manufacturers, the possibility of export is critically important. Without the prospect of exporting products or generating profits, foreign partners see no sense in establishing joint production facilities.
The Need to Open Exports
The FPU emphasizes the necessity of making decisions regarding the opening of controlled exports of weapons and military equipment that are not required by the security and defense forces. This will help preserve production capacities, avoid relocation, and provide companies with the opportunity to obtain the necessary financial resources for the development of new technologies.
“Undoubtedly, the top priority remains ensuring the Armed Forces of Ukraine and preventing the re-export of Ukrainian products to the enemy or countries that support the aggressor,” the federation added.