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ConflictsUkraine

Ukraine seeks foreign investment for its arms industry

July 14, 2025

Ukrainian President Volodymyr Zelenskyy has called on Western allies to invest in Ukraine's armaments industry. Many innovative defense companies in Ukraine are being held back from scaling up production due to tight government budgets.

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Ukraine's need to defend itself against Russian aggression has led to an innovation surge that is transforming the country's arms industry. Drones have become an important cornerstone of Ukrainian warfare. One startup, which produces reconnaissance and kamikaze drones, has grown from just five employees in 2022 when the war began to 170, producing nearly 1,200 drones last year.

Despite the growth in the sector, challenges persist. Skilled workers have been mobilized to fight in the war, sourcing quality components from abroad is difficult, and insufficient financing limits production. That's why Ukrainian President Volodymyr Zelenskyy has called on Western allies to follow the example set by Denmark and fund Ukrainian arms production directly.

Scaling up through international investment could help Ukraine immensely, because although its production is tripling annually, Russia still outpaces it by producing more equipment at lower costs.

 

(This video summary was created using AI. A journalist edited it before publication.)