8 October 2025

Russia’s War Transforms Ukraine into a World-Leading Military Producer

Taras Kuzio

Russia’s 2022 invasion triggered a surge in Ukraine’s defense sector, experiencing a 350 percent growth since 2022.

Ukraine leads globally in tactical and long-range drones, aiming to become the world’s “drone capital.” Upcoming artificial intelligence (AI)-driven swarms are anticipated to replace one-operator systems, transforming the efficiency and autonomy of warfare.

Initiatives such as Brave1, Defense City, and Test in Ukraine connect Ukrainian firms to Western investors and allow North Atlantic Treaty Organization (NATO) partners to trial weapons in live combat conditions for rapid integration.

Low-cost, rapid-production systems such as AI-driven drones, robotic ground vehicles, and long-range missiles such as the FP-5 give Ukraine asymmetric advantages, destroying Russian assets while strengthening European security integration.

Ukraine’s defense sector underpins European security and rearmament, supplying cost-effective, battle-proven technologies that enhance NATO, solidifying Ukraine as Europe’s defensive backbone.

Introduction

Russia’s full-scale invasion of Ukraine on February 24, 2022, has transformed Ukraine into possessing the world’s most innovative defense sector (see EDM, October 8, November 8, 2024). Since 2022, Ukraine’s defense sector has experienced a 350 percent growth, with a notable breakthrough in 2023–2024, when investment increased by 900 percent, according to various estimates ranging from $35 to $50 million (UBN, April 22). Only 26 percent of Ukraine’s defense companies operated before 2022.

Growth of Ukraine’s defense sector will continue because Russia’s maximalist goals have not changed, and international attempts at brokering peace have failed. EU foreign policy chief Kaja Kallas said, “A strong Ukrainian military is the main security guarantee for Europe as Russia shows no sign of ending its war” (UBN, September 4).

Drone Production and Technological Innovation

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