Ukraine's Defense Industry Suffers from Chaotic Management and Short-Term Planning
Ukraine lacks a coherent long-term policy for its defense industry, leading to inefficient resource use and hindering private sector development.
While the government recently approved a mechanism for controlled arms exports, the deeper issue is the chaotic state management in the defense sector and the absence of long-term planning. Ukraine's Defense Industrial Complex (OPK) suffers from fragmented governance, with key players operating without clear division of responsibilities.
After the liquidated Ministry of Strategic Industries transferred its functions to the Ministry of Defense in 2025, the hoped-for improvement gave way to greater confusion. The Defense Ministry focuses mainly on short-term procurement with a one-year planning horizon, preventing producers from developing five-year strategies. The Ministry of Economy plays a secondary role, even though arms production is essentially an economic activity. The National Security and Defense Council (NSDC) currently prioritizes export regulation and Drone Deals, but lacks comprehensive coordination with other bodies, such as units under the Ministry of Internal Affairs.
Parliament and the president are involved but their input is fragmented, lacking a strategic framework. The author calls for a unified military-technical policy (MTP) for a five-year term, defining priorities, ensuring resources, and aligning international cooperation. Without such a policy, Ukraine's dreams of military technology as an economic pillar will remain unrealized, as producers may relocate abroad, cause brain drain, and lose investments.
She emphasizes that the private sector is ready to engage, but the state must take the lead in creating a clear and sustainable policy.
