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10:26 23 Feb 2025

Solutions to win: Ukraine to involve private sector in explosives production

Фото: Телеграм / FEDOROV

Private companies in Ukraine will be involved in the production of explosives and will receive financial support in the form of grants.

This was announced by Minister of Digital Transformation Mykhailo Fedorov during the Defence Tech Innovation Forum, organized by the Brave1 defense technology cluster, Suspilne reports.

What is the problem?

The head of the Brave1 cluster, Nataliia Kushnerska, stated that Ukraine currently lacks sufficient production capacity for manufacturing explosives. She noted that efforts are underway to attract investment for this project, but there are already teams producing ammunition for drones.

"Significant progress was made last year in developing UAV ammunition. We now have over 150 codified types of drone munitions. One of the key tasks now is to ensure that these capabilities and munitions reach the front lines. I hope they will be tested and put to use. This will allow our troops to stop modifying ammunition themselves and instead order specialized shells tailored for different missions," Kushnerska said.

What is the solution?

As previously reported by the head of the department, in September last year, the Cabinet of Ministers simplified the documentation process for manufacturers of explosives and detonators.

"In order to increase production volume and accelerate the manufacturing of Ukrainian ammunition, we are removing bureaucratic obstacles for manufacturers. Companies will be able to produce, purchase, and import explosives and components without requiring permits or licenses," the report states.

Now, according to the minister, private companies will be engaged in the production of explosives in Ukraine and will receive financial support through grants.

How does it work?

As the head of the department explained:

  • First, the market was opened, allowing private-sector production of gunpowder and ammunition.
  • Second, the import of various components for production was permitted.
  • The next step is financial support.

"Grants are the best approach, and we will launch the program very quickly. The president tasked us with securing funding six months ago, and those funds have already been allocated," said Fedorov.

He noted that the state has developed a program to integrate private companies producing gunpowder into the initiative. One key priority is ensuring the safe location of such enterprises, with an additional program being created for this purpose.

"The licensing requirements inherently ensure safe production conditions. Facilities must be located far from residential areas and meet specific safety standards. These conditions will be put in place," Fedorov stated.

When asked about sourcing raw materials given the global shortage of substances for explosives production, Fedorov responded:

"Our entrepreneurs have various production technologies and understand where to source materials and what additional steps are needed in the supply chain. There's no challenge that Ukrainian businesses cannot solve. Additionally, domestic companies are developing innovative types of explosives."

Recent developments in Ukraine's defense sector:

Ukrainian developers from Pars presented a model of the Trembita cruise missile, which costs $4,000 and has a range of up to 150 kilometers.

The French company Thales International SAS, a specialist in aerospace and military information systems, signed an agreement with Ukrainian Defense Industry to establish a joint venture.

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