Key facts
- Ukraine has 180 confirmed defense tech partnerships in manufacturing, R&D, and maintenance.
- German companies have the most partnerships with 36, followed by Denmark (18) and the U.S. (16).
- Unmanned systems are the most common focus, making up 26% of partnerships.
- 22% of defense tech deals have stalled due to export restrictions and regulatory hurdles.
- Private-sector partnerships are more active (96%) than those involving state-owned companies (62%).
- Ukraine's Defense Ministry has launched 'Build with Ukraine' and 'Build in Ukraine' initiatives.
International joint ventures in Ukraine's defense technology sector are expanding, with a new report from the Kyiv School of Economics Institute (KSE Institute) identifying 180 confirmed partnerships in areas such as manufacturing, research and development, and maintenance. A significant portion, one-third of these collaborations, were established in the past year, reflecting the maturation and consolidation of Ukraine's defense industry amid ongoing conflict. German companies are at the forefront, participating in 36 partnerships, followed by Denmark with 18 and the United States with 16. The ventures are heavily concentrated in unmanned systems (26%), air defense (17%), and artillery (10%), driven by the evolving nature of modern warfare.
These joint ventures aim to position Ukraine as a key player in the global defense landscape, moving beyond its role as solely an aid recipient. They facilitate the repair, production, and enhancement of Ukraine's defensive capabilities while providing international partners with access to critical wartime data and technology in an increasingly volatile geopolitical climate. However, the report highlights significant challenges, with at least 22% of deals and memorandums of understanding stalled due to complex export legislation and opaque regulatory processes involving multiple government agencies.
Olena Bilousova, co-lead of KSE Institute’s defense research center, noted that partners are seeking a streamlined process, but currently face numerous bureaucratic hurdles. "We still don't have this straightforward path from the memorandum to the working entity. Someone has to take their hands and guide them through each stage," she told the Kyiv Independent.