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The Ukrainian defense market is a significant and growing sector driven by the country's ongoing conflict with Russia and its strong commitment to national defense. In 2022, the market was estimated to be worth around $6.9 billion, and it is expected to continue growing in the coming years.
The Ukrainian government is the primary driver of defense spending in the country. In 2023, the defense budget reached $7.7 billion, representing 4.3% of GDP. The government's procurement priorities are focused on modernization and upgrading the Ukrainian Armed Forces (UAF) to maintain its capabilities and meet the challenges of the ongoing conflict.
The Ukrainian government procures a wide range of defense products and services, including:
Aircraft: Fighter jets, helicopters, and transport aircraft
Land vehicles: Tanks, armored personnel carriers, and utility vehicles
Ships: Patrol boats and support vessels
Weapons systems: Missiles, artillery, and small arms
Unmanned aerial vehicles (UAVs): Drones for surveillance and reconnaissance
Cybersecurity solutions: Software, hardware, and services to protect against cyberattacks
The key government agencies responsible for defense procurement in Ukraine include:
Ministry of Defense (MoD): The lead agency for defense policy and procurement
State Procurement Agency (SPA): Responsible for managing the procurement of defense capabilities
Armed Forces Armament Department: Responsible for the technical evaluation of defense procurements
Major Ukrainian and international companies are involved in supplying defense products and services to the Ukrainian government, including:
Ukroboronprom: State-owned defense conglomerate
Antonov: Manufacturer of aircraft
Motor Sich: Manufacturer of aircraft engines
Artem: Manufacturer of missiles and ammunition
Luch: Manufacturer of anti-tank weapons
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