Defense industry of Ukraine

The defense industry of Ukraine is a strategically important sector and a large employer in Ukraine. Before the start of the War in Donbas, it was mostly used as part of Ukraine’s arms export market. However, it has leaned significantly towards increased Ukrainian military procurement since then.

Ukroboronprom is a state association of major defense conglomerates in Ukraine.

In 2012, Ukraine's export-oriented arms industry had reached the status of world's 4th largest arms exporter.[1] Since the start of the war in Donbas, Ukraine's military industry has focused more on its internal arms market and as a result slipped to the 9th spot among top global arms exporters by 2015,[2] 11th spot by 2018,[3] and the 12th spot among global arms exporters by 2019.[4]

In 2019, the main importers of Ukrainian weapons were India, Saudi Arabia and Turkey.[5]

History

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Soviet R-9 Desna ICBM and T-34 tank on display at the Central Armed Forces Museum (Russia), both where designed and manufactured in current Ukraine

Ukraine's defense industry was a major part of the Soviet defense industry, responsible for 17% of Soviet defense production and 25% of its scientific research.[6] Some Soviet ICBMs were actually built at the Yuzhmash plant in the Ukrainian city of Dnipro.[7] Russia's only aircraft carrier was also built in the Ukrainian SSR, as well as a number of other Russian military ships.

When Ukraine declared independence in 1991, the country had 1,840 defense enterprises and research centers that employed close to 2.7 million people.[6] A number of facilities had unique capabilities such as shipbuilding and missile production.[6] However, it was not a cohesive defense industry, but rather fragments of the defense industry of the Soviet Union.[6]

From 1992 to 1996, 113 Ukrainian enterprises were engaged in dual-use goods, including weapons.[5] The lack of clear legislation resulted in an arms market where everyone earned whatever however they could, including in illegal schemes.[5] The state took control of Ukraine's defense industry in October 1996. Ukrspetsexport.[5]

From 1992 to 2014, Ukrainian military exports mainly fell into three categories: new or used equipment, joint development, and maintenance of Soviet-made machinery and equipment.[5] The output of Ukrainian defense plants grew 58% in 2009, with largest growth reported by aircraft builders (77%) and ship builders (71%).[8] Until 2011, the first place for Ukraine in terms of profitability was the sale of aircraft and the provision of services for its modernization and repair.[5] In second place was armored vehicles.[5] In 2011 trade in armored vehicles (including the export of the T-84 Oplot to Thailand) replaced the military aviation export as most profitable military exports, and since then third place has traditionally been occupied by trade in air defense equipment.[5] In 2012 (by far Ukraine's most successful year of arms export)[5] Ukraine had the status of world's 4th largest arms exporter.[1] In 2013 Ukraine's defense sector manufactured a total of 11.7 billion Ukrainian hryvnia (₴) worth of goods, ₴10 billion of which were exported.[9] Prior to 2014 a major part of Ukraine's military business was the selling of Soviet-era stockpiles.[5]

Since the 2014 start of the war in Donbas, Ukraine's military industry focused more on its internal arms market and started to export significantly fewer abroad.[2] Before 2014, Ukrainian producers had not received significant revenues from the Armed Forces of Ukraine.[5] In the first 9 months of 2014, Ukraine's defense sector produced a record ₴13 billion worth of goods, and the increase was largely due to government orders for the war in Donbas.[9] Meanwhile, the Ukrainian army began to buy weapons, ammunition and equipment abroad en masse.[5] And since every year, the percentage of such imports increases.[5] As a result of Ukraine's arms manufacturing refocus on its own military needs, it slipped to the 9th spot among top global arms exporters by 2015.[2]

After 2015, Ukraine's defence industry stabilized, but Ukraine failed to return to its former exports.[5] In 2018, Ukraine occupied the 11th spot among global arms exporters.[3] And in 2019 the 12th spot.[4] According to Stockholm International Peace Research Institute (SIPRI), Ukraine's share in the world arms market was 2.7% in 2009-2014 and in 2014-2018 1.3%.[5] The structure of exports also changed: the main part was made up of high-tech products such as guided anti-tank missiles.[5] The business of trading in Soviet stocks has come to naught - the warehouses were emptied by the war in Donbas.[5] In 2019, the main importers of Ukrainian weapons were India, Saudi Arabia and Turkey.[5]

One of major part of the exports was gas turbine engines for ships[10][11] (mainly for the Indian Navy), helicopter engines,[12][13][14] and aircraft engines for unmanned aerial vehicles like Baykar Bayraktar Akıncı and Baykar Bayraktar Kızılelma.

Milestones and accomplishments

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Western weapons commitments

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On 30 September 2023, Ukrainian President Volodymyr Zelenskyy held a forum for 250 Western arms manufacturers, from 30 countries, in Kyiv. President Zelenskyy said that he wants to increase domestic weapons production and manufacture more Western weapons.

Saying: "Ukraine is in such a phase of the defence marathon when it is very important, critical to go forward without retreating. Results from the frontline are needed daily," Zelenskiy told executives representing more than 250 Western weapons producers…We are interested in localizing production of equipment needed for our defence and each of those advanced defence systems which are used by our soldiers…It will be a mutually beneficial partnership. I think it is a good time and place to create a large military hub,”

The Ukrainian Foreign Ministry claimed that 20 agreements between Ukraine and Western companies have been signed already.[23]

Structure

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BM Oplot, produced by the KMDB guided onto a tank transporter

The defense industry of Ukraine is the most advanced branch of the state-controlled sector of Ukraine's economy. It employs more than one million people, produces advanced hardware, and designs and builds new military systems.[6]

Ukraine's defense industry is organized around Ukroboronprom, a state-owned conglomerate of over 130 companies. These companies include Soviet era giants such as Ivchenko-Progress aircraft design bureau that was opened in 1945, to newer companies such as RPC Fort which came into existence in the 1990s.

In August 2018, the Groysman government simplified the procedure for granting economic entities the right to export and import military goods and goods that contain data that constitute a state secret.[5] This opened the market for private defense companies, which previously could only work with foreign clients through a state-owned company.[5]

In October 2018, speaking at the Atlantic Council in Washington, US Special Representative for Ukraine Kurt Volker said that the United States had lifted the arms embargo on Ukraine.[24] This gave a boost to the international cooperation and development of private companies.

On 22 July 2020, the new government ministry Ministry of Strategic Industries of Ukraine was established to aid and develop Ukraine's defence industry.[25]

Major manufacturers

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Antonov An-70.

Aircraft

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See: Aviation industry of Ukraine [uk]

Armored vehicles, automotive, and special engineering equipment

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Engine

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Shipbuilding

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An * indicates that the city is located in Russian occupied Crimea. Ukraine rejects Russia's annexation of Crimea as does the majority of sovereign states in the world, but Russia has had de facto control over Crimea since 2014.

Rocket

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Electronics

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Radiolocation

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Artillery

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Firearms

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Protection gear

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Munition

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Explosives

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Optics

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Other

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See also

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References

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  1. ^ a b Interfax-Ukraine (March 18, 2013). "Ukraine world's 4th largest arms exporter in 2012, according to SIPRI". KyivPost. Retrieved 2023-04-29.
  2. ^ a b c SIPRI - Ukraine among world's ten largest arms exporters
  3. ^ a b Stockholm International Peace Research Institute (SIPRI) Fact Sheet, March 2018, TRENDS IN INTERNATIONAL ARMS TRANSFERS, 2017
  4. ^ a b UNIAN: Ukraine ranks 12th among 25 largest arms exporters
  5. ^ a b c d e f g h i j k l m n o p q r s t (in Ukrainian) Ukrainian weapons. What Ukraine sells and buys in the arms market, Ukrayinska Pravda (28 October 2020)
  6. ^ a b c d e GlobalSecurity.org: Ukraine Defense Industry
  7. ^ Putin Screwed Up – Ukraine built about 600 of Russia's ICBMs carrying about 5000 nuclear bombs and Ukraine can Give Codes to NATO and Cripple Russia's Nuclear Capability | Brian Wang | May 15, 2014
  8. ^ Ukraine may become world's sixth biggest arms trader [Kyiv Post]
  9. ^ a b "Укроборонпром за 9 месяцев изготовил продукции больше, чем за весь прошлый год". Ukrinform. Archived from the original on 10 August 2015. Retrieved 21 October 2014.
  10. ^ India partially localizes Ukrainian gas turbine engines for ships
  11. ^ GAS TURBINE ENGINES FROM UKRAINE
  12. ^ Ukrainian aerospace company allegedly supplied military helicopter parts to Russia during war
  13. ^ Ukrainian engines for Russian helicopters: lessons learnt for the State
  14. ^ Ukraine arrests head of aircraft engine maker Motor Sich over suspected treason
  15. ^ Official support of «Arms and Security '2022»
  16. ^ "В Україні розробляють унікальний "віртуальний" шолом для військових". www.ukrmilitary.com. Ukrainian Military Pages. 2016-10-29. Archived from the original on 12 June 2018. Retrieved 12 June 2018.
  17. ^ Військовий софт Delta допомагав у всіх великих операціях – від потоплення «Москви» до звільнення Зміїного. Чому з ним воювати швидше
  18. ^ Україна представила власну систему ситуаційної обізнаності Delta Міністерство оборони (МОУ)
  19. ^ Ukrainian missile program: Successful tests of the “Neptune” cruise missile system were held
  20. ^ a b Experts assess most prospective weapons being developed in Ukraine
  21. ^ Saudi-Ukrainian Cooperation on Hrim Short-Range Ballistic Missiles (SRBMs)
  22. ^ Grom Short-range ballistic missile
  23. ^ Olena Harmash (2023-09-30). "Ukraine lures Western weapons makers to transform defence industry". Reuters. Retrieved 2023-09-30.
  24. ^ "США скасувало ембарго на продаж зброї Україні". mil.in.ua. Militarny. 2018-10-19. Retrieved 19 October 2018.
  25. ^ Government backs creation of ministry for strategic industries, Ukrinform (22 July 2020)
    (in Ukrainian) A new ministry has appeared in Ukraine, Ukrayinska Pravda (22 July 2020)