Page 45 - bne IntelliNews monthly magazine September 2024

bne September 2024 Eastern Europe I 45
Ukraine invests over $7bn in defence industries, plans to increase production six-fold
Ben Aris in Berlin
Ukraine is ramping up its defence capabilities with an investment of over $7bn in its domestic arms industry this year, according to Defence Minister Rustem Umerov.
The funds have provided "enormous support" to Ukraine’s military effort against Russia in the ongoing war, in filling gaps left by the shortfall in international technical assistance.
The US ran out of money for Ukraine at the start of the year, handing Russia a devastating window of opportunity in which nearly all of Ukraine’s non-nuclear power and heating infrastructure was destroyed.
The investment is being channelled into critical areas such as drones, robotics and electronic warfare systems. "These investments are already yielding tangible results on the battlefield," Umerov said on August 28 as cited by the Kyiv Independent.
Last month, Prime Minister Denys Shmyhal announced that Ukraine plans to increase its domestic weapons pro- duction sixfold this year, as the country seeks to enhance its self-reliance in the face of ongoing conflict. According to Strategic Industries Minister Oleksandr Kamyshin, Ukraine doubled its ammu- nition production for Nato-calibre artil- lery systems last year alone.
The initiative was launched last year
at a conference hosted by Ukrainian President Volodymyr Zelenskiy, who promised to turn Ukraine into a “military production hub.” Since then, several Western partners have signed off on joint venture agreements and begun to build factories in Ukraine, led by Germany’s Rheinmetall.
Zelenskiy also highlighted Ukraine’s
achievements in military production, revealing that the country had produced three times more equipment and weapons than in the first year
of the war. This surge in production includes armoured vehicles and anti- tank missile systems.
Zelenksiy also this week introduced a new Ukrainian long-range missile-drone, the Palyanytsia, and announced during the Independence Day celebrations that Ukraine has developed and tested its first ballistic missile on August 27.
which will integrate "special units" into the army, air force and navy. Zelenskiy promised "constant scaling of production" to ensure these forces remain well supplied. "Our task
this year is not only to bolster our sky shield and Ukraine’s long-range capabilities to the fullest extent possible, but also to inflict maximum systemic losses on Russia," Zelenskiy said in February.
Ukraine plans to produce 1mn light drones and 11,000 medium- and long-range drones a year, the latter
“The emphasis on unmanned systems is not merely a tactical innovation but a necessary response to Russia's conventional military advantages as the Armed Forces of Russia (AFR) continue to outgun Ukraine in terms of artillery by at least five to one”
However, Zelenskiy emphasised that Ukraine’s ambition extends beyond traditional arms, aiming to become a global pioneer in unmanned systems.
"Almost 200 companies produced drones in Ukraine last year, up from just seven in 2022," Shmyhal said as cited by Al Jazeera, adding that drone production has increased 100-fold. Last year Ukraine launched a “million drones a year” programme to radically increase domestic production. This rapid expansion means that Ukraine is now producing 90% of the drones
it uses, Zelenskiy confirmed during
a recent meeting with the joint chiefs.
Earlier this year the Defence Ministry set up the Unmanned Systems Forces,
with a range of more than 1,000 km, according to Kamyshin.
Umerov, speaking to G7 representatives in Kyiv last December, confirmed that Ukraine had "established production" and a "financing plan" to achieve these ambitious targets.
The emphasis on unmanned systems
is not merely a tactical innovation
but a necessary response to Russia's conventional military advantages as the Armed Forces of Russia (AFR) continue to outgun Ukraine in terms of artillery by at least five to one. Days before his dismissal, former Commander-in-Chief Valerii Zaluzhny described unmanned systems as "almost the only tool" capable of breaking the stalemate in
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