Private arms manufacturers from Ukraine should be able to export their products, as export restrictions lead to the relocation of this business, and, as a result, a decrease in the share of defense tech in total IT exports and a loss of export potential.
Private arms manufacturers from Ukraine should be able to export their products, as export restrictions lead to the relocation of this business, and, as a result, a decrease in the share of defense tech in total IT exports and a loss of export potential.
This was noted by the executive director of Technological Forces of Ukraine, Kateryna Mykhalko, in a comment to UNIAN.
«Our industry data shows that 85% of surveyed gunsmiths have already relocated or are planning to do so. The top five countries that manufacturers are considering for relocation are Poland, the Czech Republic, the USA, Slovakia and Estonia. Last year alone, the volume of unused export potential was $2 billion. This refers to the volume of weapons and military equipment that TSU member companies had the capacity to produce, but this equipment was not contracted by the state,» she explained.
According to Kateryna Mykhalko, if these foreign exchange revenues were to go to the state budget, it would have a positive effect on Ukraine’s economic capacity, and defense companies would receive resources for developing innovations, creating more effective products for the military, and technological competition with the enemy.
She also added that instant results in exports should not be expected, because Ukrainian manufacturers need time to establish ties with international partners, adjust to the standards of allied countries, and study the peculiarities of local legislation in a number of countries.
«But if we don’t open exports today, in two or three years Ukraine will lose this time to develop communication. Even when the aggressor country is actively preparing to export Russian UAVs and plans to regain the lost share of the global arms market,» says Kateryna Mykhalko.
As dev.ua wrote, as of last summer, 38% of Ukrainian defense companies complained that more than half of their capacities are currently idle, and in order to find customers, companies are opening branches abroad.
