Ukraine will double the share of defense production in its gross domestic product by the end of 2024.

This was announced during the International Defense Industries Forum DFNC2.

One of the main directions in the development of the Ukrainian defense industry will be to increase the share of gross domestic product for the defense needs, which will double by the end of 2024 compared to last year.

“Last year, defense accounted for 1.5% of our GDP. This year, it should be twice as much,” said Oleksandr Kamyshin, Advisor to the President of Ukraine.

Also, the main focus of ideas for improving Ukraine’s defense industry was import substitution of military equipment that could be produced in Ukraine.

Localization of production also plays a significant role in this, which would allow a significant share of funds for the purchase of specific weapons to remain within the country.

According to the Minister of Economy of Ukraine, Yuliia Svyrydenko, the country imported about $5 billion worth of weapons in 2024, and part of these funds should have remained within the country to support Ukraine’s economy.

“Everything that can be produced in Ukraine should be produced in Ukraine,” Svyrydenko added.

Additionally, the report of the manager of the defense industry management, Herman Smetanin, was presented, in which he reported a significant increase in the defense industry of Ukraine three times compared to 2023. In addition, as part of the expansion of production, the production of defense products has increased significantly from $5 billion in 2023 to $20 billion in 2024.

The cooperation between public and private defense companies has also become an important area to ensure their efficiency in the production of defense products. Nevertheless, the bulk of the critical technologies should remain in the ownership of the state-owned enterprises, which will be supported by the state.

Deputy Minister of Defense of Ukraine Dmytro Klymenko also spoke and reported on significant investments in the economy and military equipment.

“Over the year, we have invested $4 billion in our economy and production, a significant part of which is the investments in the development of military equipment. We will increase this figure,” Klymenko said.