The international delegation, headed by Ana Lucía Bueno, ICRC Public Health Coordinator, and Sujit Panda, Head of the Physical Rehabilitation…
Ukraine’s defense-industrial complex has undergone a large-scale transformation — from a state-centered model to a flexible ecosystem with hundreds of private companies, decentralized production, and direct feedback between the military and engineers.
This was reported on the website of the Ministry of Defense of Ukraine.
The information was announced by Deputy Minister of Defense of Ukraine Hanna Hvozdiar during the 8th German-Ukrainian Business Forum “Resilience in Action – Partnership in Development”, — held in Berlin.
As a result, Ukraine’s defense industry has grown 35-fold — from USD 1 billion in 2022 to USD 35 billion in 2025.
According to the Deputy Minister of Defense, this growth was achieved through systemic reforms, opening the market to private manufacturers, and harmonizing standards with NATO.
Hanna Hvozdiar emphasized that European and global security is based on close cooperation among allies, and that an effective response to Russian aggression is only possible through joint, proactive, and rapid decisions by defense industries.
She identified the development of air defense systems as one of the priority areas of international cooperation, particularly mass-produced and affordable solutions to counter Russian drones.
During the panel discussion “Transformation of the Defense Industry: From Wartime Needs to Long-Term European Security”, the Deputy Minister outlined the key results of the development of Ukraine’s defense-industrial complex.
According to her, the fastest growth was seen in the production of drones, robotic systems, electronic warfare systems, software solutions, as well as artillery systems, armored vehicles, missiles, and ammunition.
Hanna Hvozdiar also highlighted the importance of regulatory and procurement reforms, including simplified imports, the introduction of transparent electronic procurement, and the launch of a digital marketplace that allows military units to independently select and order the equipment they need.
She described the next stage of development as further localization of production and the creation of a special legal regime, Defence City, to support defense businesses in Ukraine.
The Ministry of Defense also emphasized that exporting defense products is viewed as a tool for utilizing surplus production capacity, provided that the needs of Ukraine’s Defense Forces are fully met.
Already today, Ukrainian companies can offer European partners unmanned and automated systems, counter-drone and electronic warfare solutions, as well as a wide range of dual-use products.
