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Ukraine signs two contracts with domestic defense industry worth $121 million, Umerov says

by The Kyiv Independent news desk July 30, 2024 5:53 PM 2 min read
Minister of Defence of Ukraine Rustem Umerov is being seen during a joint briefing with Secretary of State for the Defence of the UK John Healey in Odesa, Ukraine, on July 07, 2024 (Ukrinform/NurPhoto via Getty Images)
This audio is created with AI assistance

Ukraine has signed two contracts worth a total of $121 million with domestic defense industry companies, Defense Minister Rustem Umerov said on July 30.

In a post on Facebook, Umerov described the two deals as "critically important for the Armed Forces of Ukraine."

"Our defense industry is getting stronger," he said, adding: "As we buy and support our own, contributing to the development of our economy and industry."

Umerov signed the deals while on a trip to Kharkiv and Poltava oblasts with President Volodymyr Zelensky on July 29.

He did not specify the companies involved or what weapons or equipment the deals related to, but in a video accompanying the post on Facebook he is seen inspecting boxes of mortar rounds and being shown a truck-mounted machine gun.

Kyiv has in recent months pushed to increase domestic weapons production amid growing uncertainty about the supply of weapons from partners abroad.

According to Strategic Industries Minister Oleksandr Kamyshin, Ukraine's defense industry has a capacity worth around $20 billion, but the state can muster only up to $10 billion to purchase weapons and equipment.

While still in its fledgling phase, the push for domestic weapons production has already had some successes.

Ukraine has its own versions of drones, sea drones,  and planned versions of air defense systems.

Additionally, German arms manufacturer Rheinmetall plans to set up at least four factories in Ukraine to produce artillery shells, military vehicles, gunpowder, and anti-aircraft weapons, with the first one ordered in June.

Ukraine aims for foreign partners to invest around $10 billion into producing Ukrainian weapons in 2024 as part of a campaign called "Manufacturing Freedom," Kamyshin said.

In late December last year, Zelensky said Ukraine had tripled its domestic production of equipment and weapons in 2023 compared to the year before.

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