Ukraine’s Defense Procurement Agency (DPA) has significantly increased its contracts with domestic weapons manufacturers, allocating Hr 158 billion ($3.8 billion) in the first half of 2025 compared to the same period in 2024, according to the Defense Ministry. This marks a major shift from prior reliance on foreign suppliers, with nearly all drones now being produced domestically.
The move highlights Ukraine’s growing self-sufficiency in military production, a critical development amid ongoing hostilities. By prioritizing local manufacturing, Ukraine aims to reduce its dependence on international arms shipments and bolster its defense capabilities. The shift also underscores the country’s resilience in the face of sustained conflict, as it works to sustain its armed forces through indigenous production.
As the war continues, Ukraine’s ability to produce critical military equipment domestically will likely play a key role in both its defense strategy and its broader geopolitical position. The increased investment in local defense industries is expected to spur economic activity, with potential spillover effects on employment and technological innovation. However, challenges such as supply chain disruptions and limited technical expertise may pose obstacles to this transition.
Officials have indicated that the DPA will continue to monitor and adjust its procurement strategies to ensure that the domestic defense sector can meet the evolving needs of the armed forces. The increased focus on local production is also seen as a strategic move to strengthen Ukraine’s position in international arms trade negotiations, as it seeks to balance economic interests with national security priorities.