Ukraine’s Defence Industry Renaissance: From Soviet Legacy to NATO Standards

The full-scale Russian invasion of Ukraine in February 2022 catalysed a transformation across nearly every facet of Ukrainian society. Amongst the most dramatic shifts has been the renaissance of Ukraine’s defense industry—an evolution driven not only by necessity but also by the strategic imperative to decouple from its Soviet-era legacy and align more closely with NATO standards. Here we explore the trajectory of this transformation, the challenges it faces and the opportunities it presents for Ukraine’s long-term sovereignty and integration into the Euro-Atlantic security architecture.

The Soviet Inheritance: Strength and Obsolescence

At the time of its independence in 1991 Ukraine inherited a significant portion of the Soviet Union’s defence industrial base. It boasted over 1,800 defence-related enterprises employing more than one million people. The country manufactured tanks, missiles, aircraft and components for nuclear weapons (although Ukraine gave up her nuclear arsenal in 1994). Key facilities included the Antonov Design Bureau (famous for its gigantic transport aircraft), the Yuzhmash missile plant and the Malyshev Tank Factory.

Yet this industrial strength was also Ukraine's Achilles heel. Ukraine’s defence sector was heavily integrated with Russia’s, and many supply chains, research partnerships and technical standards were deeply interdependent. The collapse of the USSR left the sector fragmented and underfunded. For much of the 1990s and early 2000s defence production stagnated, and Ukraine exported much of its inventory—especially to countries like China, Pakistan and Thailand—without substantial investment in modernisation.

Maidan to Mobilisation: Shocks to the System

The 2014 annexation of Crimea and the outbreak of the war in Donbas marked a turning point. Ukraine banned defence cooperation with Russia, severing long-standing supply chains. At the same time, the need to rebuild the armed forces led to an urgent push for indigenous production. State-owned conglomerate Ukroboronprom (now undergoing reform and rebranding as the Ukrainian Defense Industry) became the focal point for reviving capabilities. However, the initial response was marred by inefficiency, corruption and bureaucratic inertia.

The situation began to change as a new wave of private defence companies entered the scene. These smaller, agile firms—often founded by veterans or engineers—focused on UAVs, secure communications, and tactical equipment. By 2021, Ukraine had developed domestically produced drones, upgraded tanks and electronic warfare systems, but remained heavily reliant on foreign suppliers for key components, including Western digital optics and guidance systems.

War as Accelerator: Full Mobilisation in 2022–2025

The full-scale invasion acted as a massive accelerator. By 2023 Ukraine had implemented a wartime economy model, directing substantial government resources toward the defence sector. President Zelenskyy’s administration launched a “military-tech cluster” initiative, incentivising joint ventures, technology transfer between the military and IT companies, and public-private collaboration.

Key developments include:

• Drones and loitering munitions: Ukraine has become a leading innovator in unmanned aerial systems (UAS). Domestically produced models like the RAM II, Leleka-100, and Punisher drones are now standard tools for frontline reconnaissance and strike missions.

  
  

• Artillery and ammunition: Ukrainian firms have begun producing NATO-standard 155mm shells, with support from allies such as Poland, Germany and the Czech Republic. Legacy Soviet systems like the 152mm artillery are being phased out or adapted.

  
  

• Armoured vehicles: Modernised versions of Soviet-era tanks (such as the T-64BV) have been supplemented with newer indigenous prototypes and Western donations. Projects like the “Azovets” urban combat vehicle and the revived BTR-4 programme (an amphibious wheeled infantry fighting vehicle) reflect increased technical ambition.

The BTR-4 amphibious wheeled fighting vehicle, designed and manufactured in Ukraine

• Cyber and electronic warfare: Ukraine’s experience with Russian cyberattacks has made it a leader in military cyber defence. Domestic companies now develop jamming systems, battlefield communications encryption and counter-drone technologies.

  
  

• International partnerships: Joint ventures with Baykar (Turkey), Rheinmetall (Germany) and other NATO-aligned firms have injected both capital and know-how. These partnerships are not only enabling the co-production of high-end systems but also preparing Ukraine for postwar export potential.

Standardisation and NATO Integration

Perhaps the most profound shift is in doctrine and standards. Ukraine is actively transitioning from post-Soviet equipment and organisational logic to NATO interoperability. This means more than just new calibers or software—it involves rethinking logistics, procurement and even battlefield philosophy.

This process is not without difficulty. Western weapons systems often require complex maintenance infrastructure, training and secure data ecosystems. Ukraine’s hybrid model—using both Soviet and NATO equipment—adds logistical strain. However consistent U.S., British and EU training programmes have laid the groundwork for a generational shift within the Ukrainian Armed Forces.

Moreover in 2024 NATO formally opened the Defence Industry Interoperability Group (DIIG) to Ukrainian participation, allowing Kyiv to help shape regional defence production standards, not just to comply with them.

Challenges and the Road Ahead

Ukraine’s defense renaissance faces several risks:

• Sustainability: A wartime economy is not a permanent model. Ukraine must plan for peacetime conversion and a stable industrial policy that avoids over-militarisation.

  
  

• Corruption and governance: Defence contracts remain a vector for illicit enrichment, although wartime transparency reforms—often under pressure from Western backers—have made significant inroads.

  
  

• Workforce and capacity: Many skilled technicians and engineers are at the front. Others have fled the country. Workforce rebuilding will be key to long-term capacity.

  
  

• Foreign dependence: While integration with NATO partners is vital, over-reliance on external arms supplies and components remains a strategic vulnerability.

Forging a Sovereign Arsenal

Ukraine’s defence industry renaissance is one of the most remarkable transformations of the war. From a legacy of neglected factories and Soviet blueprints, the country is emerging as a centre of military innovation in Europe. More than mere survival, this industrial revival is a bid for strategic autonomy: a sovereign arsenal for a sovereign state.

As Ukraine prepares for a postwar future, her defence industry will be a key pillar not just of security, but also of economic development, export growth and geopolitical relevance. The transition from Soviet legacy to NATO standards is not simply a matter of equipment—it is a symbol of national rebirth.