Deputy Minister of Defense of Ukraine Anna Hvozdiyar held a meeting with a mission from the International Monetary Fund, led by Gavin Gray. During the event, the parties discussed the results of the defense-industrial complex (DIC) in 2025, its development dynamics, key challenges, and Ukraine’s strategic plans for 2026 and the medium term.
Anna Hvozdiyar emphasized that the defense-industrial complex is a strategically important sector of the economy that ensures the state’s resilience during the war.
“Ukraine has withstood thanks to the bravery of the army, the support of our partners, and our own ability to rapidly restore and expand arms production. Over three years, we have transformed a small sector into a dynamic industry that has become the foundation of our defense capability,” the Deputy Minister said.
In 2025, the Ukrainian defense-industrial complex is showing one of the fastest growth rates in Europe. The industry’s capabilities have increased to $35 billion, compared to $1 billion in 2022, and the network of weapons manufacturing enterprises has expanded to 900 companies, most of which are private. Around the sector, a strong innovation ecosystem has formed, with over two thousand teams developing advanced technologies, components, and solutions for the front. Ukraine has significantly increased ammunition production and expanded missile weapon manufacturing.
Special attention during the meeting was given to the financial model for sector development. The Deputy Minister stressed that Ukraine’s domestic resources are limited:
“We have reached a production level that far exceeds our capacity for domestic procurement. Partner support is critically important for the industry to maintain its pace and continue expanding its capabilities.”
The role of the defense-industrial complex in the economy was also discussed: in 2023, GDP growth was 5.5% (with the DIC accounting for 1.5%), and in 2024 growth was 2.9% (with the DIC accounting for 1.2%). This demonstrates that the defense industry not only meets the army’s needs but is also an important driver of economic stability and technological development in the country.
Anna Hvozdiyar thanked the IMF mission for its cooperation and attention to the development of Ukraine’s defense industry:
“It is important for us that the Fund views the defense-industrial complex not only as a military necessity but as a key element of economic development and post-war recovery. The Ukrainian industry has become a symbol of our resilience and ability to innovate under the pressure of the largest war in Europe since World War II.”
