By the World's Best Investment Manager, Financial Market's Journalist, and SEO Mastermind
Ukraine is making waves in the global arms industry, with President Volodymyr Zelenskiy announcing that the country can produce four million drones annually. This comes as Ukraine rapidly increases its production of weapons, with a focus on domestic manufacturing.
Before Russia's invasion in February 2022, drone production in Ukraine was virtually non-existent. However, in the face of adversity, Ukrainians have managed to build a new defense industry, tripling overall weapons production in 2023 and doubling it again in the first eight months of this year.
With Ukraine now spending roughly half of its state budget on defense, and receiving support from Western allies, the country is looking to increase domestic production to meet its growing needs. Prime Minister Denys Shmyhal announced plans to boost spending on weapon purchases by 65% in 2025.
At a recent forum in Kyiv, agreements were signed between Ukrainian and foreign companies to produce ammunition, drones, and repair Western equipment in Ukraine. The focus is on increasing long-range capabilities to have a technological advantage over Russian forces, with the goal of striking deep inside Russia.
As Russia plans to increase its military spending by 25% next year, investors need to keep a close eye on the developments in Ukraine's defense industry. With the country's shift towards domestic production and strategic advancements, there may be significant investment opportunities on the horizon.