Investors are not interested in cooperation with the Ministry of Defense, because they do not earn on it or earn very little. Dyvys.info and Viktor Plakhuta, the expert on the reform and development of the defense industry and defense procurement system of the Ukrainian Institute for the Future tried to understand, whether it is possible to turn loss-making defense companies into profitable ones, how this can be achieved and how to protect them from being bought by competitors or hostile countries.
In the draft budget for 2020, the Cabinet allocated 245.8 billion UAH for the needs of defense and national security. This amount is 5.4 % of Ukraine’s GDP and 36 billion bigger than last year’s expenses.
The primary tasks of the defense industry reform should be institutional changes, state support for innovative technological development of defense enterprises and increasing investment attractiveness.