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Ukraine Boosts Defense Production 1.5x as State Contracts Jump 50% in 2025
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Ukraine’s state defense enterprises increased weapons and military equipment production by 1.5 times in 2025 compared with the previous year, Defense Minister Denys Shmyhal said in a January 7 statement.
Shmyhal reported that JSC Ukrainian Defense Industry produced about $4.23 billion worth of arms and equipment in 2025, up from about $2.87 billion in 2024.
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He described the increase as Ukraine’s response to the demands of modern warfare and said expanding domestic output was strengthening national security.
He said the number of state contracts signed in 2025 rose by more than 50%, which he said allowed the government to expand production capacity and keep defense plants more fully loaded with orders.
Shmyhal said Ukraine would continue investing in technology and personnel to build an industrial base capable of supplying the Ukrainian military with what it needs, as the government presses ahead with its broader effort to develop the defense sector into a major production hub.
Meanwhile, Germany was considering federal investment guarantees and expanded cooperation with Ukraine on defense research, joint ventures, and procurement to support Ukraine’s defense-industry buildout.
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