Domestic Industry Dominates Ukraine's 2025 Defense Spending
In 2025, Ukraine dramatically increased its reliance on domestic manufacturers for state defense procurement. Orders placed with Ukrainian companies totaled nearly 430 billion hryvnias, with domestically produced lethal weaponry and ammunition now constituting 82% of that category. This represents a major strategic shift, as the import share of defense purchases has fallen to just 18%, down from 54% in previous years. This pivot is a key part of Ukraine's long-term strategy to build a self-sufficient defense industrial base while under invasion.
A Strategic Shift in Procurement Policy
Ukraine's Ministry of Defence overhauled its procurement structure in 2025 to prioritize the domestic market. This policy led to a threefold reduction in imported military supplies. As Arsen Zhumadilov notes,
“Focusing on the internal market allows manufacturers to scale up, implement innovations faster, and supply the military with solutions tailored to the frontline's real needs, all while reducing dependence on external suppliers.”
For 2026, the Defence Procurement Agency (DOT) plans to further bolster Ukrainian businesses. New supplier selection criteria will be introduced, including:
- Preferential treatment for companies that produce the maximum number of components within Ukraine.
- Diversifying orders among different manufacturers to avoid the risk of supply disruptions.
Key 2025 metrics demonstrate the success of Ukraine's strategy to strengthen its defense capabilities by developing its own production. The growth in the share of Ukrainian products in state defense procurement reflects not just an economic but a strategic approach to national security. Reorienting toward the domestic market and reducing import dependency allows Ukraine to respond more effectively to the challenges it faces. This indicates gradual progress in rebuilding and developing the defense industry, a crucial element of national security. Furthermore, the introduction of new criteria for suppliers could stimulate even greater investment activity in Ukraine's defense sector.