Explore the latest trends and actionable insights on the Ukraine Defense market to inform business strategy and pinpoint opportunities and risks

Defense Export Market Dynamics of Ukraine (2016 - 2020, $ Million)

  • Ukraine’s defense export levels exhibited a declining trend from 2016 to 2020. The export value dropped from $486 million in 2016 to $115 million in 2020
  • The country primarily exported aircraft, engines, armored vehicles, naval vessels, missiles, sensors, and artillery during the period
  • Due to the ongoing civil war in the Donbass region, Ukrainian defense industrial capabilities have been impacted because part of its defense component supplier base is in the eastern part of the country

Ukraine’s Key Export

Engines and aircrafts were Ukraine’s key exports from 2016 to 2020.

The Ukrainian defense industry is well-developed as, during the Soviet Union era, the country was a center for arms production. The country inherited a well-developed defense industrial infrastructure from the Soviet Union, and it continued to maintain this position as a prime center of weapons system development even after Ukraine had achieved independence. However, due to the ongoing civil war in the Donbass region, Ukrainian defense industrial capabilities have been impacted because part of its defense component supplier base is in the eastern part of the country.

Initiatives taken by the Ukrainian Government

The Ukrainian government has introduced several initiatives to bolster the strength of Ukrainian armed forces. Some notable examples are the Navy Vision 2035 which has laid emphasis on strengthening maritime security. The Ukrainian government has divided this strategy into three phases 2019–2025, 2025–2030, and 2030–2035. Another noteworthy imitative is the Air Force Vision 2035 which lays emphasis on the modernization of Ukraine’s air force fleet. The lockdown has affected the country’s economy severely and the nation’s defense sector has also been impacted negatively.  In 2021, the country allocated $4.2 billion to defense and its allocations for national defense are expected to increase from $4.3 billion in 2022 to $6.4 billion in 2025, reflecting a CAGR of 10.05%. The country is anticipated to allocate a cumulative expenditure of $26.4 billion over the forecast period.

Ukraine Exports by Category

Furthermore, Ukraine’s limited domestic procurement encourages domestic manufacturers to sell their products in the global arms market. The country primarily exported aircraft, engines, armored vehicles, naval vessels, missiles, sensors, and artillery from 2016 to 2020. Engines were the most exported defense products during this period, with a 39.9% share of Ukraine’s total arms exports, followed by aircraft, with a 25.8% share, and armored vehicles, with a 19.5% share.

Explore the latest trends and actionable insights on the Ukraine Defense market to inform business strategy and pinpoint opportunities and risks Explore the latest trends and actionable insights on the Ukraine Defense market to inform business strategy and pinpoint opportunities and risks Visit Report Store
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