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Ukraine’s Biggest Arms Maker Says Private Sector Now Leads Battlefield Innovation

The most important battlefield innovations in Ukraine are now coming primarily from private manufacturers, according to an interview with the CEO of Ukraine’s largest private arms producer Ukrainian Armor, Vladyslav Belbas, published by Delo UA on December 4.
Belbas said 2025 has been the company’s most productive year to date in terms of new products, their adoption into service, and approval for operational use, giving it one of the broadest portfolios on the domestic market.
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At the same time, he said overall production capacity across Ukraine’s defense sector now far exceeds the financing available from the state.
Despite these constraints, Ukrainian Armor continues to scale. The company supplies more than 1,000 mortars annually to the Armed Forces and doubled armored vehicle output in 2025 compared with last year. It has rolled out upgraded versions of its Varta and Novator vehicles, introduced specialized variants for medical, demining, and command roles, and entered the drone sector with FPV systems equipped with standardized, certified munitions, Delo UA reported.

Belbas said the liberalization of defense production since Russia’s full-scale invasion of Ukraine has enabled rapid innovation, with most frontline technologies now developed by private firms. He warned, however, that without increased funding, manufacturers cannot fully meet battlefield demand, despite having the capacity to produce far more.
Ukrainian Armor has also launched new systems such as the Protector ground platform and finalized the Varta-2 armored vehicle. Belabas said that the company’s combat-tested equipment has drawn strong interest from foreign buyers due to its competitive pricing, but added that company has other priorities at the moment.
“As a manufacturer, we prioritize communication and cooperation with external payers regarding the financing of Ukraine’s needs. That is, export without leaving the country.”

Looking ahead, Belbas said the next one to two years will be decisive for Ukraine’s defense industry. Without rapid scaling and sustained investment, he warned, Ukraine and NATO alliance risks falling behind Russia’s accelerating military production.
Previously, it was reported that Denmark has become the first NATO member to formally authorize Ukraine to establish defense manufacturing on its territory, a move that signals a new phase in Europe’s support for Kyiv, according to a report by Bild.
The new facility will be built in the southern town of Vojens, where the Ukrainian company Fire Point is preparing to open a site dedicated to producing solid rocket fuel.

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