Ukraine sold arms for nearly 1.5 bln USD in 2018.

The Ukrainian Defense Industry, a state concern of arms production, received 37.6 billion Ukrainian hryvnias (1.47 billion U.S. dollars) of net income from the sales of its products last year, the conglomerate said in a statement published on Tuesday, August 6, 2019.

Ukrainian armoured vehicle at defence & security exhibition in Ukraine. (Picture source: ArmyRecognition)

"This figure is 32 % higher than the data of 2017. Some of the branches gave the growth of more than 100%," read the statement.

The Ukrainian Army Industry includes the manufacturing and designing sector, armoured vehicles, as well as artillery armament, automotive, and special engineering equipment, shipbuilding, radiolocation, defence systems, aircrafts and high-precision armament.

It also said the net revenue from the production of precision weapons and ammunition increased from 2.7 billion Ukrainian hryvnias (105.6 million U.S. dollars) in 2017 to 5.8 billion (226.8 million U.S. dollars) in 2018, and the armoured vehicle industry's revenue grew from 5 billion Ukrainian hryvnias (195.5 million U.S. dollars) to 6.44 billion (251.8 million U.S. dollars).

In 2019 Ministry of Defense (MOD) financing is planned at UAH 102.5 billion (approx. $ 3.42 billion). About $ 566 million goes for procurement and modernization of weapons and military equipment. 

In recent years, given budget constraints, many Ukrainian armed forces acquisitions have been organized through military assistance programs with allies. Key suppliers of defence equipment to Ukraine have been the US and the UK.

The primary suppliers of defence and military equipment to Ukraine’s armed forces are the state-owned company UkrOboronProm (UOP), established in 2010, and a growing number of private enterprises. The share of private companies supplying the national defence sector will reach 60 per cent in 2019.

According to the data, in 2017, the total net profit of the participating companies amounted to 1.5 billion Ukrainian hryvnias (58.6 million U.S. dollars) and the total net income was 28 billion Ukrainian hryvnias (1.1 billion U.S. dollars).

The state-owned association includes over 130 Ukrainian defence industry companies.