UCDI calls for a single government agency to oversee defence industry

The Ukrainian Council of Defence Industry called on the authorities to establish a government body responsible for formulating and implementing defence-industrial policy.

In July 2025, the Government merged the Ministry of Strategic Industries into the Ministry of Defence. The move was expected to strengthen coordination and enable the creation of a unified system for managing the defence industry. However, according to the Council, the relevant functions remain divided among the Ministry of Defence, the Ministry of Economy, the Ministry of Finance, the Ministry of Digital Transformation, the National Security and Defence Council, state agencies and other bodies.

Each of these institutions is responsible for a separate area, but none has sufficient authority or bears overall responsibility for the development of the defence industry, the association said. According to the Ukrainian Council of Defence Industry, this system makes it more difficult to address manufacturers’ problems, coordinate government policy, attract investment, expand production capacity and help Ukrainian companies enter international markets.

The Council clarified that it was not specifically calling for the restoration of the Ministry of Strategic Industries. Instead, it proposed establishing a capable government body with clearly defined powers, sufficient resources and clear political accountability.

Such a body should:

• formulate a medium-term defence-industrial policy aligned with the requirements of the Defence Forces and budget planning;
• coordinate the development of production capacity, technologies, testing infrastructure, investment and joint manufacturing projects;
• serve as a single point of contact between the state and Ukrainian manufacturers;
• ensure the systematic promotion of Ukrainian defence products abroad and protect the interests of Ukrainian companies in international partnerships;
• involve manufacturers and industry associations in preparing decisions that affect the sector.

The Ukrainian Council of Defence Industry stressed that the defence-industrial complex is critical to Ukraine’s defence capability and has become one of the country’s largest high-technology sectors. In the association’s view, its scale and importance require an appropriate system of public administration.