Strategic Localization for Ukraine's Defense Industry
Abstract
Purpose: to evaluate the options for strategic localization for the defence industrial sector of Ukraine and to provide practical recommendations for the implementation of the policy.
Method: comparative analysis, synthesis, and case studies.
Findings: Rebuilding Ukraine’s degraded defence industry is vital for its long-term security and strategic interests, and a robust Ukrainian defence industry supports partner nation security interests as well. While continued foreign assistance remains essential in the short term, Ukraine needs to progressively localize repair, assembly, and repair capabilities for its most critical military equipment.
Theoretical implications: The paper enhances our understanding of key concepts relating to the contributions of the local defence industry to the security of Ukraine, and how those industries can be developed to support the capabilities of the Armed Forces of Ukraine. The Russia-Ukraine war serves as a contemporary case study to explore these theories in practice. The paper provides new insights for understanding the practical application of the policy of localization.
Value: Examining the practical implications of the policy of localization in Ukraine’s defence industry in the context of the Russia-Ukraine war involves understanding how these theories translate into real-world recommendations, both for Ukraine and for its international partners. that can contribute to the development and sustainment of Ukraine’s military capabilities.
Research limitations: The classification of much information relating to Ukraine’s defence industry and defence capabilities, along with the contributions of international partners, forms a limitation on the scope and depth of the study.
Downloads
References
Tkach, M., Hrytsyuk, Y., Tkachenko, V., & Kivliuk, O. (2023). Trends in the development of defense capabilities of Ukraine and NATO member states: war experience. Social Development and Security, 13(6), 104-118. https://doi.org/10.33445/sds.2023.13.6.10.
Yurkiv, N., & Shemaev, V. (2023). Defense industry as a driver of the national economy. Social Development and Security, 13(6), 95-103. https://doi.org/10.33445/sds.2023.13.6.9.
Pysmennyi, O., Krechko, S., & Bestiuk, A. (2024). The development of the defense industry of Ukraine in the conditions of war and post-war recovery. Social Development and Security, 14(2), 74-81. https://doi.org/10.33445/sds.2024.14.2.8;
Nikitchenko, V., Hmyria, V., Kostiuk, O. (2024). The Defence Industry of Ukraine and its Role in Ensuring the Security and Defence of the State. Наукові праці Державного науково-дослідного інституту випробувань і сертифікації озброєння та військової техніки 20(2), 65-71. https://doi.org/10.37701/dndivsovt.20.2024.09.
“Ukraine will increase the localization of its own production, in particular, in the defence industry: Yuliia Svyrydenko” Ministry of Economy of Ukraine, March 14, 2024 Available from : https://me.gov.ua/News/Print?lang=en-GB&id=8c8ceca2-1be7-4450-8b79-5ec76e38d15e
Dmytro Pavlenko, “How to strengthen the Ukrainian military and defense industry: A business perspective,” NV Business, October 10, 2023. Available from : https://www2.deloitte.com/ua/en/pages/press-room/deloitte-press/2023/10-10.html
Halyna Yanchenko, “Defense Technology Investment in Ukraine Is Attractive but Awaits Greater Risk Insurance,” Kennan Institute, march 26, 2024, Available from : https://www.wilsoncenter.org/blog-post/defense-technology-investment-ukraine-attractive-awaits-greater-risk-insurance
Stepan A. Davymuka. (2023). Innovation ecosystem of the defense industry of Ukraine: conceptual foundations and practice of establishment. Regional Economy (December 2023). https://doi.org/10.36818/1562-0905-2024-1-7.
Mozharovskyi, V., & Hodz, S. (2024). Military-economic aspects of maintaining the state’s defence capability in the current military and strategic situation. Baltic Journal of Economic Studies, 10(1), 185-193. https://doi.org/10.30525/2256-0742/2024-10-1-185-193
Yuliia Kerpatenko. (2024). Financial strategies for the development of the military-industrial complex in the national security system of Ukraine. Economics Finances Law (7/2024)/ 55-58. https://doi.org/10.37634/efp.2024.7.10.
Kateryna Stepanenko, George Barros, and Fredrick W. Kagan with Grace Mappes, Nicole Wolkov, Angelica Evans, and Christina Harward, “Ukraine’s Long-Term Path to Success: Jumpstarting a Self-Sufficient Defense Industrial Base with US and EU Support,” Institute for the Study of War, January 14, 2024, Available from : https://understandingwar.org/backgrounder/ukraine%E2%80%99s-long-term-path-success-jumpstarting-self-sufficient-defense-industrial-base
Kovalevskyy, S.V., Osipov, V.M., Kukosh, M.S. (2023). The Role of the Machine-Building Cluster in Ensuring the Defence Capability of Ukraine. Economic Innovations 25(4(89)), 58-67. https://doi.org/10.31520/ei.2023.25.4(89).58-67.
U.S. Security Cooperation with Ukraine. Available from : https://www.state.gov/u-s-security-cooperation-with-ukraine/
Abstract views: 276 PDF Downloads: 134
Copyright (c) 2024 Michael J. McCarthy, Taras Yemchura

This work is licensed under a Creative Commons Attribution 4.0 International License.
The authors agree with the following conditions:
1. Authors retain copyright and grant the journal right of first publication (Download agreement) with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors have the right to complete individual additional agreements for the non-exclusive spreading of the journal’s published version of the work (for example, to post work in the electronic repository of the institution or to publish it as part of a monograph), with the reference to the first publication of the work in this journal.
3. Journal’s politics allows and encourages the placement on the Internet (for example, in the repositories of institutions, personal websites, SSRN, ResearchGate, MPRA, SSOAR, etc.) manuscript of the work by the authors, before and during the process of viewing it by this journal, because it can lead to a productive research discussion and positively affect the efficiency and dynamics of citing the published work (see The Effect of Open Access).