Ukraine Aims to Transform Defense Industry into Major Military Hub with Western Partnerships

Ukrainian President Volodymyr Zelenskiy expressed his ambition on Saturday to develop Ukraine’s defence industry into a significant military hub through partnerships with Western weapons manufacturers. The objective is to increase the supply of arms to support Kyiv’s ongoing counteroffensive against Russia.

Zelenskiy made these remarks at a forum convened by his government, which brought together international producers to explore ways to jointly enhance Ukraine’s industrial capabilities for manufacturing and repairing weapons. Notably, these efforts are being pursued despite continuous Russian bombardment.

“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,” emphasized President Zelenskiy while addressing executives representing more than 250 Western weapons producers at the Kyiv forum.

He went on to highlight Ukraine’s interest in localizing the production of essential defence equipment and advanced defence systems used by its soldiers. This localization strategy aims to deliver the best results for Ukraine’s military operations.

Zelenskiy identified air defence and de-mining as immediate priorities for Ukraine. Additionally, the country seeks to enhance its domestic production capabilities for missiles, drones, and artillery ammunition.

Kyiv initiated its counteroffensive in early June to reclaim territories seized by Russia. While there have been reports of advances and the liberation of villages, major cities remain under Russian control.

Ukraine’s reliance on Western financial and military support has been critical, with tens of billions of dollars received since the start of Russia’s invasion in February 2022. The ongoing war has led to a continually increasing demand for arms and ammunition.

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Executives from weapons manufacturers representing over 30 countries attended the forum. Some expressed that they were depleting their stocks rapidly and faced challenges in securing supplies to meet the surging demand from Ukraine.

For Ukraine, the development of domestic defence production is viewed as a means to stimulate the economy, which contracted by roughly a third last year due to the ongoing conflict.

Several leading Western producers, including Germany’s Rheinmetall and Britain-based BAE Systems, have already announced plans to collaborate with Ukrainian counterparts.

Ukrainian producers have reportedly signed around 20 agreements with foreign partners to jointly produce, exchange technology, or supply components related to drones, armoured vehicles, and ammunition. Specific companies were not identified.

The Ukrainian government intends to create special economic conditions to attract Western investment into the domestic defence sector. This includes establishing a fund to support new technology development.

President Zelenskiy, in a separate meeting with representatives from U.S., British, Czech, German, French, Swedish, and Turkish weapons producers, emphasized the potential for a mutually beneficial partnership, characterizing it as an opportune moment to establish a significant military hub.