Closed arms exports force most defense companies to relocate abroad - Technological Forces of Ukraine
Many defense industry enterprises are relocating or planning to relocate abroad, in particular, due to the closed arms export.
This was stated during a meeting of the working group on improving the investment climate in the defense industry by Kateryna Mykhalko, executive director of the Technological Forces of Ukraine association, Censor.NET reports.
"We see a very sad trend. According to our survey, 85% of enterprises have either already relocated abroad or are planning to do so. This is an absolutely terrible figure for our defense industry. We really want these companies to stay in Ukraine. They want to relocate specifically to avoid going bankrupt and continue to produce the necessary weapons for the Ukrainian front and our army," she emphasized.
Among the problems that force companies to relocate, they name closed exports.
"They have a lot of surplus products. Products that the state is unable to contract today and they cannot sell them on the international market because exports are practically closed," said Mikhalko.
"The second reason is the underutilization of their own production facilities due to the lack of government orders or lack of demand for their products. The third reason is the limitation of profitability, which does not allow investing a lot of resources in development. Accordingly, it limits their growth," she added.
