The Federation of Employers of Ukraine (FEU) expresses concern over the critical state of the Ukrainian defense industry, which is on the brink of a serious crisis. This is due to insufficient government procurement caused by a lack of budget funds, as well as the inability to export products. As a result, companies in the sector face a choice: halt production or seek ways to relocate abroad. Both scenarios threaten the loss of technology, skilled personnel, and vital investments.
This is reported by Finway
Particularly important is the possibility of export for foreign companies collaborating with Ukrainian manufacturers. Foreign partners see no sense in establishing joint production capacities if there are no avenues for exporting products and generating profit.
The Need for Controlled Export Opening
FEU emphasizes the importance of making a decision to open controlled exports of armaments and military equipment that are not in demand by security and defense forces. This decision could help preserve production capacities, avoid relocation, and provide companies with the opportunity to obtain necessary financial resources for the development and implementation of new technologies.
“Undoubtedly, the priority remains ensuring the Armed Forces of Ukraine and preventing the re-export of Ukrainian products to the enemy or countries supporting the aggressor,” the federation added.