Almost three and a half years of war have transformed the battle-hardened country into a weapons factory. Compared with almost anywhere in the world, new equipment is being developed and deployed at a fraction of the cost and on a massively compressed timescale. As Russia’s full-scale invasion grinds on, Ukraine is producing some 40% of its weaponry at home. It’s a crucial development for a country that remains dependent on US intelligence and deliveries of air-defense systems to intercept Russian drone and missile attacks. The importance was driven home this week with the abrupt decision by President Donald Trump’s administration to halt supplies. It can also offer a model for NATO members now looking to ratchet up military spending to respond to a more volatile strategic environment, Kyiv argues. “My country is becoming the arsenal of the free world,” said Oleksandr Kamyshin, President Volodymyr Zelenskiy’s advisor for strategic affairs. Innovation has long been visible with the military’s use of low-cost drones to attack Russian positions and take out battle tanks, altering the nature of the battlefield. Last month’s brazen strike on strategic bombers in synchronized attacks on Russian air bases in Siberia and the far north were the clearest demonstrations of the new reality. Kyiv hopes the burst of production will be a pillar of the country’s postwar recovery. Its procurement budget is around $12 billion, though the country can now produce battle-tested hardware worth three times that amount. European governments looking to re-arm should pay attention, Ukrainian government officials have said. For now though, weapons exports are subject to a ban — a source of tension for those in the industry. The focus is on converting innovation into production. Roman Sulzhyk, a former JP Morgan and Deutsche Bank executive who runs a venture fund for military technology startups, said he’s backing “mind-boggling” military-technology ventures. “The Ukrainian mil-tech scene is extremely hot right now,” he said. |