Defence industry news review: launch of Build in Ukraine, simplification of the procurement procedure for tactical UAV and EW systems components
New Opportunities for Investing in Ukraine's Defence Industry: Build in Ukraine Initiative Officially Launched
On 22 October 2025, the Ministry of Defence announced the official launch of the government's Build in Ukraine initiative.
It is a key element of the state strategy for the development of the defence-industrial complex, aimed at attracting foreign partners to create production capacities directly in Ukraine. Its main goal is to transition from a model of importing weapons to establishing sustainable national production, which will allow the Armed Forces of Ukraine to be provided with the necessary military equipment and technology in the shortest possible time, while integrating the Ukrainian defence industry into global supply chains.
The Ministry of Defence of Ukraine is coordinating the implementation of the program, ensuring coordination between government agencies, the private sector and foreign investors. As of October 2025, more than 25 international companies have already begun the process of localising their activities in Ukraine. These include manufacturers of air defence systems, ammunition, unmanned systems, cyber defence tools, anti-drone technologies, as well as companies specialising in the repair of armoured vehicles and the supply of components.
The initiative provides attractive conditions for partners – they gain access to production sites, a skilled workforce, a developed engineering base and a unique opportunity to work in close proximity to the practical application of their developments.
For Ukraine, such cooperation means access to modern foreign technologies, additional capital and the latest management practices, as well as the formation of long-term production capacity on its own territory.
Localisation of production offers a number of strategic advantages, such as:
- minimising dependence on complex and vulnerable transit supply chains for weapons deliveries
- the ability to provide troops with the necessary materials and equipment more quickly and reliably
- improving the technological level of the domestic defence industry and introducing the latest technologies and concepts
- creating new jobs in the regions
Build in Ukraine also has a significant economic impact on the national economy. It is predicted that attracting foreign investment in the defence industry will stimulate the development of related industries, such as mechanical engineering, electronics, IT, logistics, etc.
The state is creating a favourable institutional environment for such investment projects within the framework of the initiative, in particular by introducing tax incentives, simplifying customs procedures, providing support in certification issues, etc.
One of the most significant developments is the launch by the state of Defence City, a legal regime for defence industry companies.
Thus, the Build in Ukraine initiative demonstrates Ukraine's transition from the role of a recipient of international aid to that of an equal partner in the production of modern weapons. It lays the foundation for the long-term development of the defence industry, strengthens national security and creates new opportunities for strategic investment in one of the most dynamic sectors of the Ukrainian economy today.
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Government Simplifies Procurement Procedure for Tactical UAV and EW Systems Components
The relevant Resolution No. 1342 as of 22 October 2025, “On Amendments to Clause 5 of the Procedure for the Procurement of Domestically Manufactured Unmanned Systems, Tactical-Level Electronic Warfare Equipment, and Their Components” entered into force on 23 October 2025.
From now on military units will be able to directly purchase both unmanned aerial vehicles (UAV) or “drones” and electronic warfare systems (EW) themselves and their components (electric motors, batteries, and other standardized components).
The changes also abolish the obligation of domestic suppliers of components of a codified product to collect a full set of documents for delivery to a military unit.
In particular, the following documents are no longer required:
- certificate of compliance with standards or technical conditions
- certificate of registration of a standard item / extract from the catalogue of supply items
- document confirming the admission to operation of an unmanned system
- act of conducting joint departmental tests
For further information, please contact Asters' Partner Yuna Potomkina and Counsel Anton Sintsov.
