During the three years of full-scale war, Ukraine has taken some steps at the state level to access the private sector's miltech industry. First of all, it has carried out deregulation. Until 2022, this industry was almost closed, explained Oleksandr Yakovenko, CEO of TAF Drones, during a discussion at the LB.ua and EFI Group's New Country project Economy as a Foundation of National Security.
With the outbreak of the great war, the situation changed: first, small players began to appear, but then large ones joined them and became powerful manufacturers of various products. So the government deregulated the market and allowed different players to enter.
At the same time, Ukraine is highly dependent on imports of components, particularly from China.
"The next steps [to develop the industry] are to allow the export of technologies and our products. Currently, manufacturers are underutilised by 100%. The average load varies from company to company, but it is no more than half of capacity. At the same time, the government prohibits exporting products abroad. We understand why this is happening. It makes political sense, because it would be strange if we, a country at war, exported products," he said.
However, in his opinion, the export ban has a negative impact on both the economy and the development of the industry.