Three years of war || Ukraine found in an old American friend the gun to combat the Russian invasion
When the Russian army invaded the Ukrainian territory in February 2022, panic settled. The intensity of the confrontations, in the early weeks, made it clear that even the colossal Soviet reserves would be insufficient. Ukrainian leaders knew that more weaponry of all kinds was needed, but their budget was only a third of the invader. It was necessary to do something urgently and Kiev did not hesitate. The Ukrainian response was an authentic revolution, which fired the production and innovation of military equipment in the country, and is now a hope for postwar economic recovery.
“To defeat Russia, we can’t do what they do. They will always have more money. They will always have more factories. So we will have to depend on our entrepreneurs and innovation,” said Mykhailo Fedorov, The young minister of Ukrainian digital transformation, responsible for the technological development of the Ukrainian defense industry.
Kiev understood early that it is unrealistic to compete with the amount of equipment Russia is able to produce, as this industry operates with a blank check of the Russian budget. Confronted with the enemy’s gigantic military production capacity, inherited from the Soviet Union, Ukraine has bet on all the chips in a radical change, abandoning the industry directly controlled by the state to a model that places innovation in the hands of private. The Ukrainian government has decided to encourage entrepreneurs with a mix of low taxes, government subsidies, bureaucracy and simplified weaponry acquisition processes.
And the decision is results: just over two years after applying structural changes, Ukraine has doubled weapon production capacity and already manufactures 40% of everything it needs on the battlefield, according to President Volodymyr Zelensky . Although it still depends on US and European military support, Kiev dominates the production of air, naval and terrestrial drones, artificial intelligence systems for military use, armored vehicles, artillery systems, artillery ammunition of all calibers and even one Amazing long -range missile program.
“Ukraine already produces many ammunition, already produces 155mm ammunition and can already be self -sufficient in the 120 mm mortar ammunition. Within a year, it will very possibly be able to produce the most common conventional weaponry. Ukraine has been surprising with a brutal ability to adapt to the realities of war and produce what it needs, ”the Major General Isidro de Morais Pereira explains to CNN Portugal.
The most visible face of this revolution is drone production. And it’s no wonder. If Ukraine is able to contain the advances of an enemy with much more resources, this is due to this technology. The Ukrainian front line commanders estimate that these systems were responsible for 80% of Russian casualties on the front line last year. A number that, between dead and injured, reached 427,000 soldiers, according to the Ukrainian Armed Forces Chief of Staff, Oleksandr Syrskyi. Currently, Kamikaze drones represent “almost half” of all Ukrainian army shots and are responsible for more than two thirds of the destroyed Russian armored armored. And the trend is to increase.
At the beginning of the Russian invasion, drones production in Ukraine was virtually nonexistent. Now, in the main cities of the Ukrainian rear, dozens of factories and workshops produce more than four million drones per year. Many of them are authentic startups, started in garages in the early days of the war, which eventually developed their own products and deliver them directly to the front line to the units they need most. This direct connection with the military allows these companies to have almost immediate feedback from their products, allowing you to get the information obtained and improve their drones, adapting them to the real needs of the battlefield.
To accelerate the capital capture process and help Ukrainian companies accelerate the pace of innovation and investment, the Ukrainian government has created a fund called Brave1. The goal is to connect investors directly to entrepreneurs. This model contrasts with the other side of the front line. In Russia everything is in the hands of a huge state monopoly, which responds only to the Ministry of Defense, which orders everything it needs. This model allows the Russians to produce huge amounts of military equipment, but removes the agility and ability to innovate that the Ukrainian industry is achieving.
An example of the Ukrainian ability to innovate is the development of Palianytsia, a long -range jet drone, capable of flying hundreds of high -speed kilometers until it reaches the target accurately. These weapons, far more complex than other types of drones that Ukraine produces, took 18 months to develop and costs one million euros per unit. But other companies produce cheaper alternatives, which Ukraine has used great effectiveness to achieve refineries in the interior of Russia. President Zelensky said Ukraine’s major goal for 2025 is to produce at least 30,000 of these drones by the end of the year.
But the new Ukrainian military industry is innovating in other battlefields. An example of this success has come to the water of the Black Sea, where Naval drones have almost completely canceled the Russian fleet. After sinking several vessels, the Russian Navy is forced to operate from more distant ports. Equipped with hundreds of pounds of explosives, a detonator, cameras and a remote control system, these small vessels are priced at $ 250,000 per unit. Now innovations begin to appear in these systems. In recent months, Kiev has released an attack on a Russian oil platform, where one of these naval devices launched air drones during an attack.
“The production capacity of Ukrainian drones has no rival. And it’s not just the little Kamikaze drones. Ukraine is already beginning to have drones that can attack the enemy’s rear to hundreds of kilometers, ”says Isidro de Morais Pereira.
But all this happens with huge challenges for entrepreneurs who risk investing in the construction of drone workshops. Constant attacks on the Ukrainian power grid make electricity down several times. This requires factories and workshops to buy fuel electricity generators, which increases costs significantly. And besides, it’s not easy to lease a space to set up a small drone workshop. These places are, for all purposes, an attractive military target for Kremlin and many owners fear their property destroyed due to the activities of tenants. Many prefer to play for insurance or charge an extra.
What is impressive in the transformation of the Ukrainian industry is not only the speed with which Kiev increased its production capacity, but also the fact that Ukrainian industry began to produce a variety of systems that its army did not even use in zero. Beginning of the invasion. An important example of this is the production of large -caliber artillery ammunition. Before the invasion, Ukraine operated only Soviet -caliber artillery, however, after the West sent thousands of millions of military aid, Kiev began the transition to the NATO standard. Currently, the Ukraine defense sector has more than 200 new companies, responsible for the production of a wide range of products, from ammunition cartridges to explosives.
“National defense is one of the state’s sovereignty functions. It is the guarantee of independence and integrity of a country and also the freedom of people. It is soon the state that assumes, and will have to continue to assume, the lead role. , the state can and should support more national companies that operate in the defense economy sector, especially in a geopolitical reality that is becoming increasingly challenging, “explains economist Ricardo Ferraz, professor at ISEG and Lusophone.
Ukraine not only became able to produce ammunition, but also developed systems for shooting them. An example of success is the 2S22 Bohdana, a wheeled artillery system capable of reaching targets 50 kilometers away, which is already being exported to Denmark. This cannon played a crucial role in the back of the Serpente Island on the coast of Odessa. In June 2022, Ukrainian military personnel used this system to destroy the enemy air defenses that existed at the site, leading to the removal of the Russian army.
This success motivated the Ministry of Defense to start mass production of this vehicle. For this, it was necessary to find the whereabouts of the original team that developed Bohdana. Some of these engineers were serving in front of battle and had to be removed to help create new production lines. At the end of 2023, Ukraine produced only six units. Currently, the annual production of Bohdanas increased to 240 at the end of 2024, a significant increase considering that the country had only two units at the beginning of the war.
The revolution in the Ukrainian defense industry is not limited to the battlefield and is opening doors to a promising economic future, with the potential to turn Ukraine a relevant player in the weaponry market. The ability to quickly innovate and produce equipment at competitive costs has already attracted the attention of partner nations. A concrete example is the export agreement signed with Denmark for the supply of 2S22 Bohdana. This contract, signed in 2024, marks the beginning of a new phase in which Ukraine is not only a military aid receiver, but also a technology exporter tested in combat, which reinforces its credibility in the international market.
In addition, the entry of Western conglomerates in the Ukrainian scenario is consolidating this business potential. Companies such as German Rheinmetall and French KNDS signed agreements to build factories in Ukrainian territory, focusing on the repair of armored vehicles and the production of anti-aircraft artillery and defense systems. Rheinmetall, for example, announced in mid -2024 an initial investment of 150 million euros in a Lynx Armored Production Unit, with plans to expand the operation in 2025. KNDS is collaborating with local companies to manufacture ammunition compatible with NATO standards, taking advantage of qualified labor and tax incentives offered by the Ukrainian government. These agreements not only strengthen local production capacity but also position Ukraine as a strategic hub for the European defense industry.
And it is difficult to ignore the long -term implications that these movements may have for the country. With industrial infrastructure adapting to Western standards and a growing reputation for Ukrainian drones and missiles, the country can explore emerging markets in Africa and Asia, where the demand for accessible and efficient weaponry is increasing. The success of Kamikaze and Naval drones, which have proven their effectiveness against a powerful opponent like Russia, can attract customers interested in low -cost and high impact solutions. In addition, war -time experience gives Ukrainian companies a rare advantage in the defense industry: the ability to offer products tested in real conditions with successful demonstrated.
Ukraine continues, however, limited by its ability to attract capital to accelerate production and develop new solutions. Despite being able to produce more than 40% of your needs – and it seems that this percentage will increase by 2025 – the material is still insufficient to wage Russian advances on the battlefield, which have been achieving important achievements in the last year, Despite the high price paid by Moscow. Still, the “hypercapitalist” model chosen by Kiev was effective enough to ensure Ukraine survival during the Russian invasion. It remains to be seen if it will be resilient enough to endure the possible end of US military support.
