- Proportion of defence contract awards to Ukrainian manufacturers nearly double in 2025 compared to 2024
- Imports of foreign equipment fell significantly, as Ukraine looks to focus on in-country providers
- Kyiv has also announced the creation of a drone mission planning and execution tool, intended to aid battlefield awareness
Ukraine’s Defence Procurement Agency has revealed that the share of contracts awarded to Ukrainian manufacturers in 2025 rose from 46% in 2024 to 82% the following year, as imports fell to 18% of equipment acquisitions, down from 54% through the previous 12 months.
The focus on local equipment is likely being driven by a number of factors, including a slowdown in platforms provided by the US, as the administration of President Donald Trump continues to modify its approach to supporting Ukraine.
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Other factors will be a reduced inventory of platforms able to be provided by Kyiv’s European allies, which have provided thousands of armoured vehicles, among other capabilities, since Russia’s large-scale invasion of its neighbour in 2022.
The volume of domestic procurement of defence systems amounted to nearly UAH 430bn ($10bn).
“Focusing on the domestic market enables manufacturers to scale up, accelerate the introduction of innovations, and supply the military with solutions tailored to the real needs of the frontline, while reducing dependence on external suppliers,” said Arsen Zhumadilov, director of the Defence Procurement Agency DOT, in a 23 January statement.
Ukraine will continue to prioritise the development of its own defence supply chains in 2026, particularly in the delivery of combat drones, which now saturate the eastern frontline.
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The country’s defence ecosystem has distinct advantages over European companies in being able to rapidly test systems in real-world combat environments and then iterate at the speed of battlefield relevance.
Ukrainian companies are provided access to structures such as the ‘Army of Drones: Bonus Programme’, offering clear pathways for Ukraine’s SMEs to supply frontline units.
However, some experts feel that Ukraine’s defence SME sector will need to consolidate in the coming years to avoid duplication of efforts.
Ukraine to develop drone C2 network
Meanwhile, Ukraine’s new defence minister, Mykhailo Fedorov, announced the creation of a common combat drone command and control system, situated within the DELTA network.
Fedorov, who was previously the Minister for Digital Transformation, has long championed the use of digital technologies to speed up decision making in government bureaucracy.
The project will enable drone teams to input mission data into a central database in a bid to digitise information collection and dissemination. Unit commanders will be able to see real-time updates of battlefield operations, with the next step being to launch a similar program for the use by artillery regiments.
The digitisation of Ukraine’s defence administrative functions was first reported by Army Technology from the western city of Lviv in 2024, with subsequent visits in 2025 shedding further light on the role of non-traditional industrial expertise in the country’s wartime administration.
