More than 40 percent of the equipment being used at the frontline against Russian aggression is now produced inside Ukraine, with ambitious plans to further increase domestic production to £28 billion ($35 billion) by the end of 2025. This important development was announced during a national telethon by Oleksiy Leonov, a member of Ukraine’s Committee on Tax and Customs Policy, according to UNN.
Leonov explained that Ukraine’s defence industry has reached its strongest position since independence, despite the tragic circumstances. He noted that today, the country’s defence complex is responsible for providing nearly half of all military equipment needed at the front. This achievement reflects the effectiveness of Ukrainian strategy and the tireless work of Ukrainian manufacturers.
The defence sector has now become the driving force of Ukraine’s economy. Nearly £21 million (1 billion hryvnias) has been allocated this year alone to subsidise loans for defence enterprises. Leonov stressed that the defence industry is no longer just about supplying the armed forces, but it is now the locomotive pulling the broader economy forward.
Growth in defence production has been rapid. In 2022, Ukraine’s defence output stood at around £2.4 billion ($3 billion). By 2024, it had soared to approximately £16 billion ($20 billion). By the end of 2025, it is forecast to reach an impressive £28 billion ($35 billion) in domestic production.
Leonov described this rapid expansion as a necessary militarisation of the economy given the existential threat from the Kremlin. He pointed out that the Ukrainian government is continuously working on initiatives to support this vital industry. One recent step has been the launch of a new grant programme called “Made for Victory”, which offers grants of up to £160,000 (8 million hryvnias) to manufacturers of key components, on co-financing terms.
Ukraine’s efforts to boost domestic production come alongside strong international support. Nearly £84 billion ($105 billion) worth of aid from the United States alone has already been delivered, mainly in the form of weapons, as Ukraine continues to resist Russian occupation.
