Europe must buy from Ukraine's defensive industry

Copyright © HT Digital Streams Limit all rights reserved. Economist, The Economist 2 Min Read 17 Jun 2025, 03:12 PM is a summary of the European Union is blown (Reuters) and also invests in it. You may also think that these are especially difficult times in Ukraine. Last year’s American Aid package is almost used up, and no one expects another. Russia begins another spring offensive and pumminous cities of Ukraine from the sky. Donald Trump’s efforts to secure a peace agreement did not even produce a proposed 30 -day ceasefire. In fact, the vote in Kyiv is probably more confident than when it was when spring offensive from last year fell. One big reason is that Ukraine is much less dependent on foreign kit. The country’s defensive industry, which was largely abandoned after the collapse of the Soviet Union, is shooting at all cylinders again. This year, production is expected to amount to around $ 15 billion, from only $ 1 billion in 2022, the year’s full scale invasion has begun. Hundreds of technical startups have joined older state-owned firms in the manufacture of artillery, ammunition, armored vehicles and above all-drones and missiles. The drones changed the battlefield. They have been carved into their millions by the newly formed Ukrainian businesses, they are cheaper and often better than Western versions. Short -distance drones can see everything moving, and pull out in the tank or an exposed Russian soldier. Longer distance drones and missiles can hit assignment centers, ammunition spills, barracks and industrial targets. If they are homemade, they are not subject to foreigners’ restrictions on what can be hit. Ukrainian officials claim that their troops are now killing between seven and ten Russians for every soldier they lose. Although Ukraine is still very exceeded, the imbalance in manpower is less important than it did. That is why Russia has struggled for almost nine months at heinous costs to take the small city of Pokrovsk (with a population before the war of 60,000). Russia occupies about 19% of Ukraine, almost exactly the same relationship as at the end of 2022. No one is talking about an imminent Ukrainian collapse now. Yet the improvement in the fate of Ukraine would be even more striking if European governments and the EU themselves arrive. One way to meet the defense needs of Ukraine is to send it more Europa-made set, but it is difficult because most defense companies can scale the production without long-term contracts (an exception is Rheinmetall). Instead, the Europeans should spend their money for military assistance to the Ukraine’s own defense industry. Officials say it has the ability to produce about $ 35 billion dollars this year, if only the government could afford to put more contracts. One option is that European governments provide Ukraine with weapons that they buy directly from Ukrainian businesses. This will allow domestic defense production to expand to the level of existing capacity and beyond. EU governments can also, with contracts or even co-investment, encourage joint ventures between European and Ukrainian firms. It can help the country develop faster and more accurate offensive missiles, and restore the largest remaining weakness of Ukraine: the desperate lack of air defense missile systems that can knock out incoming Russian missiles. It would also mean sharing Ukrainian expertise in Drone warfare. Contracting with Ukraine and setting up joint ventures with its firms would be a cost-effective way to reduce the end of US help. Individual European countries, led by Denmark, have already started this road. These efforts must be built. Give Ukrainian defense firms more money, and they will make their own instruments to keep Russia in jeopardy. Subscribers to The Economist can subscribe to our opinion newsletter, which brings together the best of our leaders, columns, gas essays and reader correspondence. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Europe Read Next Story