--- title: "Ukraine's Private Defense Industry Outpaces the State Sector in Deliveries Without Receiving Direct State Investment" description: "The state invested 60 billion UAH in the fixed assets of the DIC, yet private manufacturers received no direct funding from that sum. According to NAUDI's assessment, it is the private sector that today outpaces the state sector in the volume of weapons deliveries." date: 2026-08-26T15:14:00.000Z lang: en url: https://xab.info/en/posts/ukraines-private-defense-sector-outpaces-state-sector-en tags: [ukraine-defense-industry, private-sector, uav, artillery, defense-cooperation] publisher: "XAB.info" --- # Ukraine's Private Defense Industry Outpaces the State Sector in Deliveries Without Receiving Direct State Investment ![Private Ukrainian defense industry booth at an international exhibition: NAUDI drones and UAVs showcase the private sector's success without direct state investment](https://xab.info/media/2026/08/26/chastnyy-sektor-opk-ukrainy-operezhayet-gossekter/chastnyy-sektor-opk-ukrainy-operezhayet-gossekter-1.webp) ## 🎯 Key Points - The state invested 60 billion UAH in the fixed assets of the DIC, but the private sector received no direct funding from that sum. - According to NAUDI head Serhiy Pashynskyi, among Ukraine's 10 largest defense companies there is not a single state-owned one, and 6–7 of them are association members. - NAUDI member companies significantly outpace the state DIC sector in delivery volumes. RBC-Ukraine's special project, "Our Own Weapons β€” A Shield of Independence: How Ukraine Rebuilt Its Defense Industry," captured a paradox that today anchors the entire debate over the future of Ukraine's defense-industrial complex (DIC). The state directed 60 billion UAH into the fixed assets of the defense-industrial complex, yet the private sector β€” the very segment that, by industry estimates, forms the core of the modern industry β€” received no direct funding from that sum. Formally, the money went to state assets; in practice, it was the private enterprises that found themselves at the forefront of weapons production and deliveries. ### The Private DIC: From the Periphery to the Core of the Industry The scale of this shift is vividly described by Serhiy Pashynskyi, head of the National Association of Ukraine's Defense Industry (NAUDI). In his words, among Ukraine's ten largest defense companies there is not a single state-owned one, and six to seven of them are members of the association. Moreover, according to Pashynskyi's assessment, NAUDI member companies significantly outpace the state DIC sector in the volume of products delivered. "Weapons should not be made by the state alone. That is already a fact," he states, thereby confirming not a hypothetical trend but an already established market reality. ### The Portfolio of Private Manufacturers The private defense sector began to take active shape after 2014 and, over the course of a decade, grew into a full-fledged production framework. Among the notable players today are "Ukrainska Bronetekhnika" (Ukrainian Armored Vehicles), Radionix, Ukrspecsystems, and a number of other companies. Their competencies cover a wide range of tasks: from armored vehicles and unmanned systems to electronic warfare means, interceptor drones, artillery ammunition, and mortars. NAUDI has previously noted separately that it was precisely the private sector that became the main force ensuring the supply of artillery ammunition in Ukraine. ### Cooperation and International Outreach An important tool for the industry's development, NAUDI calls production cooperation: in a number of projects, three to four association companies pool their competencies to create new products or expand production capabilities. A separate direction is international cooperation. The association helps Ukrainian manufacturers present their products at foreign exhibitions, conduct negotiations with foreign governments and companies, and seek partners for joint production and financing. It is precisely this role that the association demonstrates on international stages, where NAUDI booths bearing Ukrainian symbols and displays of unmanned systems serve as a showcase of the domestic DIC for foreign buyers. ### Conclusion: A New Architecture for the Defense Industry The combination of these factors leads to the conclusion drawn by RBC-Ukraine: the private sector, which received no state investment, has become one of the key elements of the new Ukrainian DIC. In effect, the industry has reorganized itself around private manufacturers, while the state's 60 billion UAH remained largely within the perimeter of state ownership. For observers, this means that the future dynamics of weapons deliveries will depend to a large extent on how private companies manage the issues of financing, cooperation, and entry into external markets. ## πŸ” Fact-Check Verification - [Private DIC companies received no state investment but outpace the state sector in deliveries](https://www.rbc.ua/ukr/news/privatni-kompaniyi-opk-otrimali-derzhinvestitsiy-1787756644.html) - Основной источник: спСцпроСкт Π Π‘Πš-Π£ΠΊΡ€Π°ΠΈΠ½Π° ΠΈ заявлСния Π³Π»Π°Π²Ρ‹ NAUDI Π‘. Пашинского (60 ΠΌΠ»Ρ€Π΄ Π³Ρ€Π½ Π² основныС Ρ„ΠΎΠ½Π΄Ρ‹, 0 госкомпаний Π² Ρ‚ΠΎΠΏ-10, 6-7 Ρ‡Π»Π΅Π½ΠΎΠ² NAUDI, ΠΎΠΏΠ΅Ρ€Π΅ΠΆΠ΅Π½ΠΈΠ΅ госсСктора). Π¦ΠΈΡ„Ρ€Ρ‹ ΠΈ ΠΎΡ†Π΅Π½ΠΊΠΈ одноисточниковыС, нСзависимого кросс-ΠΏΡ€ΠΎΠ²Π΅Ρ€ΠΎΡ‡Π½ΠΎΠ³ΠΎ источника Π² ΠΏΠΎΠ΄Π±ΠΎΡ€ΠΊΠ΅ Π½Π΅Ρ‚. - [British Ambassador: Ukraine is the "Silicon Valley" of the Western defense sector](https://www.rbc.ua/ukr/news/posol-britaniyi-ukrayina-tse-kremnieva-dolina-1786438504.html) - Основной источник: спСцпроСкт Π Π‘Πš-Π£ΠΊΡ€Π°ΠΈΠ½Π° ΠΈ заявлСния Π³Π»Π°Π²Ρ‹ NAUDI Π‘. Пашинского (60 ΠΌΠ»Ρ€Π΄ Π³Ρ€Π½ Π² основныС Ρ„ΠΎΠ½Π΄Ρ‹, 0 госкомпаний Π² Ρ‚ΠΎΠΏ-10, 6-7 Ρ‡Π»Π΅Π½ΠΎΠ² NAUDI, ΠΎΠΏΠ΅Ρ€Π΅ΠΆΠ΅Π½ΠΈΠ΅ госсСктора). Π¦ΠΈΡ„Ρ€Ρ‹ ΠΈ ΠΎΡ†Π΅Π½ΠΊΠΈ одноисточниковыС, нСзависимого кросс-ΠΏΡ€ΠΎΠ²Π΅Ρ€ΠΎΡ‡Π½ΠΎΠ³ΠΎ источника Π² ΠΏΠΎΠ΄Π±ΠΎΡ€ΠΊΠ΅ Π½Π΅Ρ‚. ## ❓ FAQ ### Q: How much did the state invest in the fixed assets of Ukraine's DIC? **A:** According to RBC-Ukraine's special project, 60 billion UAH. ### Q: Did the private sector receive direct funding from that sum? **A:** No. Of the stated 60 billion UAH, the private sector received no direct funding, despite its key role in weapons production. ### Q: Who, according to NAUDI, outpaces the state sector in deliveries? **A:** NAUDI member companies, i.e., the private DIC sector. According to the association's head, Serhiy Pashynskyi, they significantly outpace the state sector in the volume of products delivered.