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Ukraine's growing arms sector thwarted by cash shortages and attacks
World News
2024-04-19 | 06:09
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Ukraine's growing arms sector thwarted by cash shortages and attacks
Hundreds of Ukrainian businesses making weapons and military equipment have sprung up since Russia's full-scale invasion, but some are struggling to fund production and all are afraid of being targeted in intensifying Russian missile strikes.
Owners say they have pumped in their own cash to survive and moved locations at their own expense to stay ahead of Russian intelligence. They are now urging the government to cut what they describe as excessive red tape around its arms purchases.
Several also want to be allowed to export, arguing that the government is unable to buy all of their output.
According to Ukraine's strategic industries minister Oleksandr Kamyshin, the potential annual output of the military-industrial complex now stands at $18-20 billion.
Ukraine's cash-strapped government can only fund about a third of that, the minister told Reuters in an interview. That compares with $120 billion of military aid received from allies throughout the war, most of it in equipment rather than cash.
"We have the biggest fight in a generation. If you look, for example, at NATO-caliber artillery shells, the production capacity of the US and EU put together is lower than our needs," said Kamyshin.
Reuters
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