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Ukraine increases arms production by quarter in first three months of 2024

The highest production rates were in February. 

Ukraine increases arms production by quarter in first three months of 2024
Photo: Defence Ministry

In the first quarter of 2024, Ukrainian manufacturers produced an average of 24.8% more weapons and ammunition than in the same period last year, Forbes writes with reference to the State Statistics Service's data on the results of the industry in the first quarter.

In particular, in January 2024, Ukraine produced 26.6% more weapons and ammunition compared to January last year. In February, the growth was 29%, and in March the production rate was the lowest: Ukraine produced 18.8% more weapons than in the same month last year.

However, according to the data, arms production in January slightly decreased by 4% compared to December 2023. In February, 8.2% fewer weapons were produced than in the previous month. However, in March, production volumes exceeded the figures for February 2024 by 1.3%. 

Last year, the Ukrainian defence industry tripled its production to $3 billion. The defence industry added 1.5% to Ukraine's GDP last year. 

  • In December last year, Minister of Strategic Industries Oleksandr Kamyshin said that the defence sector's capabilities were six times higher than the budget for arms purchases.
  • In March of this year, Herman Smetanin, CEO of the Ukrainian Defence Industry JSC, said that the capacity of domestic production is three times higher than the procurement capacity of the Ministry of Defence.
  • The gap between the capabilities of Ukrainian arms production companies and the funding available for their use is estimated at $10 billion in 2024. The Ukrainian defence industry is capable of producing $20 billion worth of products per year. Of this, $6 billion is contracted, $4 billion is to be covered by the Ministry within Ukraine, so $10 billion is funding that can be provided by partners.
  • 70% of the total amount of all agreements concluded by the Defence Procurement Agency in 2024 is with domestic producers of weapons, ammunition and military equipment. In some areas, such as UAVs, almost 100% of the funds were spent on contracting with them.
  • Of the 500 defence companies operating in this market in Ukraine, 80% are private. At the beginning of the full-scale invasion, private companies accounted for 20% of the sector.
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