According to analysts, military aid to Ukraine in July and August decreased by 43% compared to the first half of the year. Most of it is now coming through the PURL program, which includes NATO allies from Belgium, Canada, Denmark, Germany, Latvia, the Netherlands, Norway, and Sweden. The PURL initiative has replaced U.S. arms donations to Ukraine and now requires allies to pay for these supplies.
At the same time, according to Ukraine’s Defense Minister Denys Shmyhal, Ukraine is becoming a global center for the production of modern security solutions and is turning into one of the most promising markets for investment in the defense industry. In addition, Ukraine has plans to establish joint ventures with partners both inside and outside the country. Moreover, 25 foreign companies, including global giants in the defense industry, are already at various stages of localizing production in Ukraine. And the state has signed a letter of intent with Poland on cooperation in the defense industry.
Shmyhal emphasized that the Ukrainian defense ecosystem already includes about 900 enterprises (approximately 100 state-owned and 800 private). And the capabilities of the Ukrainian defense industry are already estimated at $35 billion. At the same time, more than 40% of the weapons at the front today are Ukrainian-made.
Deputy Minister Hanna Hvozdyar noted that Ukraine, which used to be only a recipient of Western aid, has become a full-fledged partner thanks to its defense technologies and unique knowledge. However, one of the main factors hindering the development of the domestic defense tech sector, according to her, is the lack of funds. Therefore, to solve this problem, the Ukrainian government is working on an arms export model. The first agreements should be signed in the near future, Hvozdyar added. This will also open up Ukraine’s investment potential, give businesses a boost and bring useful technologies to the frontline.
By the way, Finland will provide Ukraine with a new, 30th package of military aid worth €52 million. It will consist mainly of orders from Finnish defense companies. In total, the country has already transferred almost €2.9 billion in aid to Ukraine.
