Excessive bureaucracy in the military procurement sector, lack of funds, lack of planned orders and constant risks of missile attacks are the main factors that hinder the development of the Ukrainian military industrial complex.

This is stated in the Reuters article “Growth of Ukraine’s military sector hampered by lack of funding and attacks”.

“The first threat that manufacturers face when they start working is the bureaucracy in the military procurement sector,” Vladyslav Belbas, director general of Ukrainian Armor LLC, said in a commentary to the publication.

He also noted that the lack of long-term planning hinders the development of the industry’s enterprises, as the placement of orders by the Ministry of Defense only for the current year does not allow manufacturers to scale production.

In addition to financial difficulties, the production of weapons in Ukraine during a full-scale war is fraught with risks. Companies in the industry have to relocate production sites to protect themselves from enemy attacks.

“Of those (manufacturers) I spoke to, not a single private company has received (state) compensation for relocation,” noted Belbas.

Another problem facing manufacturers is the threat of power outages as Russia destroys energy infrastructure while Ukraine runs out of air defense equipment to protect its sky.

“In 2022-2023, we had no electricity for two-thirds of the working time – of course, it is very difficult to produce anything in such conditions,” Belbas said.