Most Ukrainian defense industry manufacturers are considering moving their operations abroad. Why?

Wednesday, March 26, 2025
Most Ukrainian defense industry manufacturers are considering moving their operations abroad. Why?

As of February, 85% of private manufacturers of weapons and military equipment (WME) are planning to relocate or have already done so, according to 34 private companies in the defense sector. The top five countries most commonly chosen for relocation include Poland, the Czech Republic, the US, Slovakia, and Estonia.

The leading reason that prompts manufacturers to consider relocation is Ukraine’s ban on arms exports, cited by 63%. Other reasons include the low volume of government purchase orders, despite the industry’s potential for increased production, at 47%, security threats at 47%, and a lack of state defense orders at 44%, as well as other difficulties in the industry. The anticipated volume of government orders over the next few years, along with the opening of WME exports for more than 70% of the surveyed companies, will be key factors that encourage manufacturers to remain in Ukraine.

As of February 2025, only 15% of surveyed manufacturers have fully utilized their production capacities, while another 60% are operating at 50% utilization. The remaining manufacturers have capacities utilized at less than 30% or are not operational.

 

Support independent journalism team

Dear Ukraine Business News reader, we are a team of 20 Ukrainian journalists, researchers, reporters and editors who would humbly ask for your support.

Previous post
Chronic debt owed to green electricity producers is hindering the development of new projects.

Chronic debt owed to green electricity producers is hindering the development of new projects.

Next post
Trump is preparing to impose

Trump is preparing to impose "unprecedented" tariffs on imports from Russia.

Previous Main Topics