Ukraine Can't Afford to Buy Its Own Weapons, Report Says

Military manufacturers in Ukraine have greatly increased production to help in the fight against Russia, but they are struggling to sell their equipment to Kyiv to help the war effort, it has been reported.

Ukrainian factories produced weapons worth $3 billion last year, a figure that will increase sixfold this year to $18 billion in an industry that employs around 300,000 people. However, the state can spend only 50 percent of its military funds on domestic manufacturers, potentially leaving billions of dollars worth of equipment on the shelf, Ukrainian news outlet Ekonimichna Pravda (EP) reported.

Without guaranteed government orders from Kyiv, this gap may force domestic arms factories to cut staff and slow down new product development, which threatens Ukraine's ability to fight Russia.

"Due to insufficient funding, the conclusion of contracts is not rhythmic," Yulia Vysotska, director of the NGO Praktika, told the publication, according to a translation. "We would be happy if at least a third of our capacity was constantly loaded and we understood production plans for a couple of years ahead."

Data released this week from the Stockholm International Peace Research Institute (SIPRI) showed that Ukraine has become the largest importer of arms over the past five years and was fourth worldwide between 2019 and 2023.

Since the start of Russia's full-scale invasion in February 2022, around 30 countries have contributed to Ukraine's arsenal, with the United States leading the pack at 39 percent, followed by Germany at 14 percent and Poland at 13 percent.

But EP noted how allies' announcements of military aid for Ukraine often masked how it stimulated the defense industry of donor countries.

For instance, The Washington Post reported that of the $68 billion in military and related assistance Congress has approved for Kyiv, almost 90 percent is spent in the U.S. Since 2022, Ukraine's Ministry of Defense has purchased 350,000 units of ammunition from the European Union alone.

Citing Ukrainian defense industry sources, EP said Kyiv hasn't been able to convince allies to buy Ukrainian equipment and it insists on purchasing foreign kit, which is often more expensive.

Ukrainian arms manufacturers are also unable to sell their goods abroad because export licenses haven't been issued since the war started two years ago.

EP outlined how Ukraine's General Staff tells the country's defense ministry what equipment it needs, which always exceeds what is affordable, meaning that military and government officials have to prioritize every month.

Even if the equipment it makes is needed, a domestic manufacturer may not make the priority list because of the cost, or if it isn't considered as important as shells or drones.

Opening up Ukrainian weapons to foreign markets could solve some of the problems that domestic producers face, Serhiy Vysotsky, deputy chairman of the NAUDI association, which represents private arms manufacturers, told EP.

"We need to tell our partners that our manufacturers do not have enough money, that we can squeeze Russia in the arms market, or that our battle-tested equipment will be able to be bought by allies," Vysotsky said.

Newsweek contacted the Ukrainian defense ministry for comment.