KYIV – Ukraine is on the verge of finalizing agreements for three new joint ventures with European arms manufacturers, marking a significant step in boosting its defense capabilities during its ongoing conflict with Russia, First Deputy Prime Minister Yulia Svyrydenko announced. These partnerships will add to five existing joint ventures established with Western arms producers, including companies from Germany and Lithuania, and underscore Ukraine’s commitment to increasing domestic weapons production.
Svyrydenko highlighted the rapid growth of Ukraine’s military-industrial sector, where both state-owned and private companies have been ramping up production in response to the demands of the battlefield. While specific details remain confidential, President Volodymyr Zelensky recently stated that Ukraine could produce up to four million drones annually and has plans to scale up the production of missiles, drone systems, and armored vehicles.
Germany’s Rheinmetall has already launched a defense plant in Ukraine focused on the maintenance of combat vehicles and is set to begin manufacturing Lynx infantry fighting vehicles by year’s end. Additionally, several leading arms companies, including the UK’s BAE Systems, France-Germany’s KDNS, and Denmark’s MyDefence, have set up local offices to facilitate defense collaborations. Flensburger Fahrzeugbau Gesellschaft, a German arms producer, is also building a service center in Ukraine in partnership with a private Ukrainian company.
The defense production sector has become an economic driver for Ukraine, now accounting for 1.8% of GDP, compared to just 0.3% in 2021, according to Svyrydenko. This growth reflects Ukraine’s strategy to not only meet its own defense needs but also strengthen its economic resilience through technological partnerships and foreign investments in military production.