Main image: Ukrainian cruise missile Neptune. 2024. Ukraine. Frame from a video by President of Ukraine Volodymyr Zelensky.
Ukraine will double the share of defense production in relation to gross domestic product by the end of 2024.
This was announced during the International Defense Industry Forum DFNC2.
One of the main directions in building up Ukraine's defense-industrial complex will be to increase the share of gross domestic product allocated for defense needs, which will double compared to last year by the end of 2024.
"Last year, defense accounted for 1.5% of our GDP. This year, it should be twice as much," said Oleksandr Kamyshin, advisor to the President of Ukraine.
Another key direction for improving Ukraine's defense-industrial complex is the import substitution of military equipment that can be produced in Ukraine.
Localization of production plays a significant role in this, allowing a substantial portion of funds allocated for specific weapon purchases to remain within the country.
As noted by Ukraine's Minister of Economy, Yulia Svyrydenko, the country imported weapons worth approximately $5 billion in 2024, and part of this funding should remain in the country as part of economic support.
"Everything that can be produced in Ukraine should be produced in Ukraine," Svyrydenko added.
Additionally, a report was presented by the defense industry management manager, Herman Smetanin, in which he announced a significant growth of Ukraine's defense sector, tripling compared to 2023. Furthermore, within the framework of production expansion, the output of defense products rose dramatically from $5 billion achieved in 2023 to $20 billion in 2024.
One of the important directions is also the cooperation between state and private defense companies to ensure their efficiency in producing defense products. Despite this, the majority of critically important technologies should remain under the ownership of state enterprises, which will receive government support.
Also present was Deputy Minister of Defense of Ukraine, Dmytro Klymenko, who reported significant investments in the economy and military technology.
"In a year, we invested $4 billion in our economy and production, a significant portion of which went towards the development of military technology. We will increase this figure," Klymenko reported.
