Ukraine's Defense Industry Deepens War Economy: Over 3,000 Active Companies and Ventures

Ihor Fedirko, Chairman of the Ukrainian Defense Industry Council, stated that the defense ecosystem in the country has grown to include over 3,000 entities, with more than 1,000 private companies and over 2,000 ventures. Fedirko also noted that about 80% of the Defense Ministry's budget is now spent within Ukraine.

Scraper SystemJune 12, 2026, 08:19 PM

Ukraine's Defense Industry Deepens War Economy: Over 3,000 Active Companies and Ventures

Ukraine's defense industry has transformed into a broad ecosystem composed of private companies and ventures. Ihor Fedirko, Chairman of the Ukrainian Defense Industry Council, revealed that more than 1,000 private companies are active in the sector, with over 2,000 ventures registered in the Brave1 database.

Fedirko explained that this represents a structure of over 3,000 enterprises that continues to grow. According to him, the sector's expansion not only increases production numbers but also accelerates through acquisitions among companies.

Companies Acquire Technology and Equipment

Fedirko described how companies are now incorporating smaller firms and acquiring their technologies and equipment through these purchases. He emphasized the increasing difficulty in finding qualified personnel, making human resources critical in the defense industry.

He also noted that many companies are not solely focused on meeting domestic demand but are also pursuing product codification and seeking credit to expand production. This situation indicates that Ukraine's defense industry is evolving into a more institutional and scalable structure under wartime conditions.

Majority of Budget Spent Domestically

According to Fedirko, about 80% of the Defense Ministry's budget is now spent within Ukraine. He recalled that last year this figure was around 50%, with only about 20% allocated to purchasing certain types of weapons from abroad.

This shift highlights Ukraine's increasing reliance on domestic production for defense procurement. The rise in local companies and the concentration of budget spending domestically demonstrate efforts to build defense capacity within the country during wartime.

Parliament Increased the Budget

On June 10, the Ukrainian parliament fully approved amendments to the 2026 state budget in the second reading. The package aims to increase security and defense expenditures by 1.56 trillion hryvnias.

When considered alongside the growth in the defense industry and the rising share of the budget spent domestically, this decision shows that the Kyiv administration is accelerating steps to strengthen the country's defense capabilities.

Ukraine's Defense Industry Deepens War Economy: Over 3,000 Active Companies and Ventures