Ukrainian arms manufacturers move production abroad – Le Figaro.

Most Ukrainian arms manufacturers plan to move their operations abroad due to difficulties faced in Ukraine. According to a survey by Tech Force in UA, nearly 85% of arms manufacturing companies are considering moving part of their operations abroad or have already done so.

Ukrainian manufacturers demanded the lifting of the ban on exporting domestic weapons, as they continue to actively expand the defense industry. However, problems with short-term contracts and delivery delays, as well as the lack of long-term guarantees necessary for investment in research and development, have forced many manufacturers to consider moving their operations abroad.

«While Ukraine constantly asks allies for military aid, the country is also massively producing its own weapons. Since the start of the large-scale invasion, its defense industry has grown several times. In the first half of this year, it produced 25 times more ammunition than in the entire 2022, capable of producing 4 million drones per year, and has also started manufacturing standard 155-mm NATO ammunition. In the prototyping stage in 2022, up to eight «Bohdana» howitzers, similar to the French «Caesar», are produced monthly on Ukrainian assembly lines, – the publication states.

Problems with short-term contracts and the lack of long-term guarantees are the main reasons for moving operations abroad. Additionally, some companies decided to bypass the export ban by moving their operations to Slovakia and Poland to continue production and meet demand.

Ukrainian Defense Minister Rustem Umerov said that some countries have expressed interest in purchasing Ukrainian missiles and drones, enabling the potential lifting of the export ban. The Cabinet of Ministers also approved a new support program for the defense-industrial complex, allowing critical enterprises to obtain a loan of up to 500 million UAH at 5% per annum for five years.