Ukraine’s Defense Industry Emerges as a Key Player in Europe’s Security Architecture
As global military spending hits record levels and demand for defense equipment continues to surge, Ukraine’s defense industry is rapidly gaining attention from Western partners—and seizing the moment.
According to Ukrainian MP Ihor Kopytin, interest from European defense firms in cooperation with Ukrainian manufacturers is growing fast, with several landmark projects already underway, The Gaze reports, citing Interfax Ukraine.
Ukraine’s defense sector is becoming a driving force in its post-war economy. In 2023, it accounted for 1.5% of the country’s 4.9% GDP growth. The country currently leads the world in military expenditure as a share of GDP—37%—and allocates 58% of its state budget to defense.
Production figures tell the story of rapid expansion: in 2023–2024, Ukraine tripled its artillery output, increased armored vehicle production fivefold, doubled anti-tank weapon production, and grew ammunition output by 2.5 times. Most notably, its drone industry expanded more than tenfold in 2024 alone, with over $50 million in investments.
Major international players are taking notice. Czech firm Česká zbrojovka (a Colt CZ subsidiary) has launched licensed assembly of BREN-2 rifles in Ukraine, with plans to establish full-cycle NATO-standard production.
Turkish company Baykar will begin operating its UAV factory in Ukraine this summer, and Germany’s Rheinmetall plans to open four production facilities in Ukraine by 2026, covering tanks, air defense systems, and artillery munitions.
As Ukraine deepens EU integration, collaboration in the defense sector is becoming a strategic priority for both Kyiv and Brussels. “Ukraine’s defense industry offers faster innovation, combat-tested technologies, and cost-efficient production,” Kopytin noted.
With over 800 Ukrainian defense firms—ranging from artillery and reconnaissance drones to electronic warfare systems and battlefield IT solutions—the country is positioning itself as both a vital contributor and a strategic partner in strengthening Europe’s collective defense.
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