Ukraine has been among the global leaders exporting weaponry and topping USD 1,5 B in sales in 2012, according to the Stockholm International Peace Research Institute. The country produces cutting-edge air and naval defence missile and radar systems, tanks, armoured vehicles, and drones, and has increased the share of private companies in the production by 70% in 2018. With the new Western management onboard, Ukraine’s largest state-owned defence concern Ukroboronprom is undergoing systemic changes, including through contemplated adoption of best-practice corporate governance model, seeking to make the industry transparent and efficient. Ukraine has also been on a global radar for its engineer and technologically savvy capabilities of producing engines for the world’s largest aerospace companies, as well as developing satellite and other air security solutions for numerous sovereigns.

Top-ranked in global volumes of weaponry exports, Ukraine has established the defence as one of its priority industries requiring upgrading.

The government has been undertaking a series of measures aimed at rebuilding the sector through institutional transformation, satisfaction of the domestic demand, and expansion of the exports opportunities.

The 2028 Defence Development Strategy includes, among others, the reforming of the public procurements in the defence, corporatisation and launch of joint ventures, introduction of new defence projects, increase in profits, adoption of NATO standards, updating of the manufacturing facilities, and expansion of a share in overseas markets.

Endeavouring to grow its defence presence internationally, including on the international trade front, Ukraine has gone an extra mile in an attempt to deregulate the sector and liberalise its exports and imports. This has resulted in operations of over 130 enterprises securing weaponry and military equipment and tech supplies. The annual expenditures amount to USD 10 billion, and to facilitate procurements, the country has finalised its arrangement with NATO Support and Procurement Agency (NSPA) enabling direct purchases without intermediaries.

Boulders’ lawyers have been carefully following the relevant developments and are well furnished to advise you on relevant sectoral opportunities.

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