About 60% of weapons, military equipment in Ukraine produced by private sector

The relevant statement was made by Ukrainian Council of Defence Industry CEO Ihor Fedirko in an interview with Ukrinform.

“We have calculated that 60% of weapons and military equipment is currently produced by private manufacturers, and 40% – by state-owned companies. However, in pricing terms, this ratio is the opposite, i.e. about 60-65% in value terms is produced by state-owned companies. These are missile weapons, heavy equipment, tanks, armored personnel carriers, i.e. traditional military equipment, expensive. Thus, the state-owned sector has an advantage here,” Fedirko told.

Meanwhile, almost the entire range of the existing unmanned aerial vehicles (UAVs) is made by private manufacturers. Businesses are also taking the lead in the production of electronic warfare and electronic reconnaissance systems, optics, thermal imaging equipment, ground robotic systems, etc.

“Private businesses are gradually starting to enter the sector of traditional weapons, such as drone missiles and armored vehicles. Today, 85% of the light armored vehicles production output is covered by private businesses. The only thing that hinders development in this sector is the high financial threshold for entry. Such production requires expensive equipment, large production areas,” Fedirko added.

A reminder that Ukraine’s arms and military equipment production hit UAH 365 billion (or USD 9 billion) during 2024, which is threefold higher compared to 2023. Last year, Ukrainian defense manufacturers significantly expanded the production of new weapon systems, including strike drones like Peklo and Palianytsia, the towed self-propelled howitzer Bohdana, and the Ukrainian analogs of the Mavic drone.