Ukraine Launches Grant Program to Boost Missile and Gunpowder Manufacturing

In Ukraine, a market for ammunition has emerged, with the state contracting and purchasing "millions" of rounds, particularly for drones. Grants for missile production have already been initiated, and next year, additional grants will be available for powder factories.

This was stated by Mykhailo Fedorov, the Minister of Digital Transformation, during the Defense Tech Valley summit held in Kyiv on October 3-4, as reported by a correspondent from Suspilne.

Fedorov also noted that regulations governing the production of gunpowder and other explosives in Ukraine have been removed.

"For instance, this year, the investment amount in the Brave1  cluster has increased. I'll let you in on a secret: we started issuing grants for missile production this year. Next year, we will provide grants for powder factories. These are non-repayable grants that serve as a guarantee that if you invest, those investments will yield returns," Fedorov explained.

The minister highlighted that Ukraine is developing simulators to test defense technologies and the necessary infrastructure.

"We have established certain units. In NATO doctrines, they are referred to as 'innovation incubators' that test technologies on the battlefield. We have created our own units, and there are now several of them. Before purchasing anything, we test it in our own units and observe how different drones and electronic warfare systems perform in real conditions," he said.

Fedorov also mentioned that over the past two years, more than 200 companies have been founded in Ukraine focusing on robotic ground platforms, 500 companies producing drones, and over 100 developing electronic warfare (EW) tools.

"A small startup doesn’t need to become a large corporation to make a difference on the battlefield. Investors don’t have to wait many years for a startup to succeed. It could happen in three months, six months, or a year; everything can progress quite quickly," the Minister of Digital Transformation concluded.