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24 February 2025

Ukraine Boosts Defense With Private Sector Explosives Manufacturing

Government to provide grants for private companies to manufacture explosives and munitions amid warfare needs.

Ukraine is stepping up its efforts to bolster its defense capabilities through the engagement of private companies for the manufacturing of explosives and ammunition. Vice Prime Minister Mykhailo Fedorov made this announcement during the Defence Tech Innovation Forum, highlighting the government’s commitment to support the private sector with financial grants aimed at fostering production capacity.

Fedorov indicated significant preparatory measures have been taken to eliminate bureaucratic hurdles previously hindering the industry. "We opened the market and allowed the production of gunpowder for the private sector and ammunition. We also allowed the import of various components for production," he stated, according to Suspilne.

The initiative is seen as a necessary move to address the growing needs of Ukraine's armed forces, amid increasing warfare driven by external aggression. The Vice Prime Minister emphasized the importance of this approach, noting, "Grants are the best approach, and we will launch this very quickly." He reassured stakeholders involved by mentioning funds have already been allocated to kickstart this process.

Under the newly developed program, private companies engaged in the production of explosives will have the opportunity to participate significantly. Fedorov stressed the importance of site safety for such manufacturing plants, noting, "There are requirements for obtaining licenses to create safe conditions for production. It should be far away from populated areas, strictly adhering to safety criteria.”

Addressing concerns about sourcing raw materials amid global shortages, Fedorov stated, "There are no problems for Ukrainian entrepreneurs. They understand where to procure the necessary components and what additional links must be included within the production chain." Such confidence reflects the inventive spirit prevalent among Ukrainian businesses, especially under the pressures of war.

Additional insights from Natalia Kushnerska, the head of the Brave1 defense technology cluster, supported the governmental perspective on the private sector's role. According to Kushnerska, "We have established over 150 different coded ammunition types for drones," underscoring the growing capabilities within this specific ammunition sector.

The urgency for such initiatives has never been higher, as evidenced by plans from the Ministry of Defense to invest over 44 billion UAH (approximately $1.2 billion) for purchasing FPV drones by 2025. This investment aims to integrate modern technology with domestic production, which includes successful collaborative efforts between private developers and government facilities.

Kushnerska noted the significance of accelerating the development and delivery of ammunition to the front lines. "One of our main tasks now is to communicate to the front about these capabilities and available munitions, I hope they can be tested soon to support our forces where they are needed most,” she highlighted.

This push for revitalizing Ukraine's explosive manufacturing sector caters to the pressing need for self-sufficiency and reduces reliance on international suppliers. By allowing private entities to step boldly onto the stage, the government is not just fostering growth but fortifying the overall defense architecture.

Through this modern initiative, Ukraine aims to overcome logistical challenges and engage its commercial sector effectively, enhancing its military's operational readiness. This strategy has residents hopeful as the nation continues to navigate the complex dynamics of its current geopolitical situation.