Ukraine Defense Industry Reports $7B in Orders

The Ukrainian defense industry has secured $7 billion in orders, but this figure reflects only about one-third of its potential production capacity.

Lindy Smith, a member of the Supervisory Board of Ukroboronprom and President of the Defense-Industrial Coalition of Arizona, emphasized the need for improved utilization of defense enterprises in Ukraine.

“The capabilities of defense enterprises of Ukraine are not 100% involved. Experts say that the Ukrainian defense industry currently has $7 billion in orders, which is only about a third of its potential capacity,” Smith said.

During the second Defense Industries Forum, where she moderated a panel discussion, Smith noted that global efforts to enhance the arms industry prior to the full-scale Russian invasion of Ukraine have proven inadequate. She stated, “Quick and effective actions from both Ukrainians and their allies are necessary” to address the current challenges.

The forum included discussions on the production of conventional weapons and the difficulties faced by arms manufacturers amid the ongoing conflict with Russia. Key participants included Ihor Chepkov, head of the Central Research Institute of Armaments and Military Equipment of the Armed Forces of Ukraine; Maxim Bilan, executive director of the joint venture Rheinmetall and Ukroboronprom; Joe Dunaway, President of Amentum Services, Inc.; Christian Siar, general director of the Ukrainian division of BAE Systems; and Rainer Warner, Senior Vice President of KNDS Deutschland.

Smith highlighted that the dynamics of the Russian-Ukrainian war are affected by various critical factors, including the inability of Western production rates to keep pace with the rapid depletion of weapon stockpiles on the battlefield. To mitigate this issue, she suggested strengthening production cooperation between Ukrainian and Western defense industries, which could involve the establishment of joint enterprises, technology transfer, and the active involvement of foreign investments.