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Ukraine to Produce Ammo Chemicals in the US, Shielding Key Defense Supply From Russian Missile Strikes

The Ukrainian state defense conglomerate Ukroboronprom has signed an agreement with the US-based D&M Holding Company to establish a joint production facility for chemical components used in ammunition manufacturing. The facility will be located in the United States.
According to Defense Express on July 14, the agreement was signed during the Ukraine Recovery Conference (URC 2025) in Rome. The primary objective is to address the shortage of critical chemical materials necessary for producing ammunition used by Ukraine’s Defense Forces.
Despite the plant being located abroad, Ukrainian officials emphasized that the facility will supply components specifically intended for Ukrainian military production. CEO of Ukrainian Defense Industry, Oleh Huliak, highlighted that placing the plant on secure US territory will protect it from missile and drone threats.
The decision follows a broader strategy of relocating parts of Ukraine’s defense production abroad. Earlier steps in this direction included joint defense projects with Denmark. The US remains a key partner, and the collaboration is seen as a way to reduce geopolitical risks compared to sourcing materials on the open international market.

D&M Holding Company is a US manufacturer known for supplying equipment used in small arms ammunition production. The new plant will likely focus on supplying essential materials for this segment.
In September 2024, the US Department of Defense announced that D&M was also involved in constructing ammunition production facilities in Ukraine as a contractor.
While locating the plant in the US may raise concerns about dependence on American decisions or potential security risks from foreign sabotage, the strategic benefit for Ukraine lies in securing a stable and reliable source of components for domestic ammunition manufacturing—an area where demand continues to grow.
Earlier, US Senator Lindsey Graham told CBS News that a turning point in the war is imminent, predicting record-level weapons deliveries to Ukraine and new sanctions tools for President Trump.
He confirmed Trump is preparing to use presidential drawdown authority and hinted at a major announcement on July 14. Graham also warned that nations like China, India, and Brazil could face economic consequences for supporting Russia.







