From direct investment to joint production: how Ukrainian defense companies are winning over the global arms market

Products of Ukraine’s defense industry are attracting growing interest from partner countries. International arms exhibitions are becoming not merely platforms for Ukrainian manufacturers to demonstrate technological achievements, but also an opportunity to attract investment to scale up production and improve solutions, UNN writes. 

Technology adaptability – a unique feature of Ukraine’s defense industry 

Military expert Oleksandr Musiienko emphasizes that the level of domestic weapons manufacturers has grown tremendously in recent years. Of course, this growth is a forced response to the full-scale war launched by Russia. At the same time, the defense industry has managed, amid a lack of resources, to find the most effective solutions possible and rapidly scale them up. 

"In recent years, our level has grown tremendously, and the number of companies operating in the defense industry has increased. The volume of products we manufacture is also growing. And, of course, Ukraine’s representation (at international exhibitions – ed.) is always of the highest standard. Moreover, I can say that Ukrainian stands attracted interest even before the full-scale war. And after the full-scale war, after Ukraine began producing weapons for deep strikes in particular, Ukrainian technological solutions have become extremely interesting. Ukraine demonstrates how an effective result can be achieved more cheaply and quickly. And precisely because we are talking about cheaper solutions that offer equivalent effectiveness, Ukraine and Ukrainian manufacturers are now very interesting," Musiienko explains. 

Ukraine’s weapons industry is developing amid a modern war that brings new threats and challenges. These challenges often leave little time to respond. As defense industry expert Anatolii Khrapchynskyi, head of a weapons manufacturing company, emphasized, Ukrainian weapons manufacturers possess something no other country has – the rapid adaptation of solutions to a threat. 

The expert gave an example: the manufacturer of Patriot systems has intensified production of 360° surveillance radars. As Khrapchynskyi explained, a standard Patriot radar sees only a sector, and problems arise with target illumination when the enemy simultaneously uses a large number of attack assets. According to the expert, this situation demonstrates that Western countries are developing their technologies less rapidly than Ukraine.  

A tangible benefit for the defense industry 

Exhibitions are not only a platform for demonstrating the strength and ingenuity of Ukrainian weapons manufacturers – they also provide an opportunity to attract investment, find partners for joint production, or, for example, secure funding under the so-called "Danish model" – when a foreign government finances the purchase of weapons from Ukrainian manufacturers for Ukraine’s needs.  

Notably, this year Ukraine’s defense industry will be represented for the second time at the DALO Industry Days exhibition in Denmark – one of the largest arms exhibitions in Scandinavia. This year, it will take place on August 19–20 and bring together more than 600 exhibitors. Experts point out that last year a number of Ukrainian companies secured funding there under the "Danish model."  

While last year domestic manufacturers were represented at a single stand, this year most of them will already have their own stands. Their technological solutions will be presented, in particular, by DevDroid – a developer of a universal control system for ground robotic complexes; Tencore LLC – an NRK manufacturer; GSCI – a manufacturer of night-vision devices; as well as the Ukrainian OSINT company Molfar.  

Fire Point, a manufacturer of long-range weapons, has also set up its stand. According to the company, the exhibition will feature full-scale examples of the FP-1, the FP-5 "Flamingo" ground-launched unmanned aerial system/cruise missile, as well as the FP-7 and FP-9 ballistic missiles.  

By the way, the company is developing cooperation with Western partners. Thus, in 2025, the Ukrainian-Danish military technology company Fire Point Rocket Technologies was founded to produce components for solid-fuel and rocket engines. In addition, Fire Point serves as the chief systems architect and integrator of FREYJA — a flagship air defense system being developed במסגרת the Anti-Ballistic Coalition, which, in addition to Ukraine, includes 9 European countries. This system is being created to counter Russian ballistic missiles in the skies over Ukraine and partner countries.  

Military expert Oleksandr Musiienko explains that events such as DALO Industry Days make it possible to involve foreign partners in joint production. According to him, there are already examples of joint production being established between domestic arms companies and representatives of the defense industries of Germany, Britain, and the Nordic countries. 

                      German-Ukrainian jointly produced drones 

"Secondly, under the legislation, exports are permitted in certain circumstances. Accordingly, companies that fully meet Ukraine's state defense order may also seek foreign markets for their supplies. This enables companies to raise funds, expand production, reinvest, and improve the efficiency of the products manufactured. And, of course, seeking investment is an important element, because there are, so to speak, solutions that are already demonstrating their effectiveness, but increasing production and expanding the manufacturing base require funds," the expert explains. 

Funds are also needed to increase the technological sophistication of Ukrainian products, since many solutions were developed under conditions of insufficient funding. European partners also have ready-made solutions that can be adapted to current challenges. At the same time, expert Anatolii Khrapchynskyi points out that Ukrainian exports currently operate במסגרת the Drone Deal, while the issue of technology exchange remains entirely open. According to him, Western investors prefer to draw technologies to their own countries and keep intellectual property rights in their own hands. Therefore, the expert believes, it is now important to think not only about the direct sale or purchase of technologies, but about exporting them במסגרת cooperation with countries that are ready to help Ukraine and build joint defense solutions.