Ukraine’s defence industry operates only at 40-60% due to export ban and low profitability rates, - "servant of people" Yanchenko
Ukraine's defence industry is only half of its capacity.
This was stated by the head of the parliamentary TIC on investor protection, Halyna Yanchenko, Censor.NET reports citing "Interfax-Ukraine".
Ukraine's defence industry is operating at 40-60% of its maximum capacity, although the production potential is estimated at $20 billion annually.
"Our defence industry has the potential to produce goods worth $20 billion a year, but it does not produce for a number of reasons and restrictions. Most of Ukraine's defence companies are operating at 40-60% of their maximum capacity," Yanchenko said.
She highlighted the main problems hindering the industry: "The average profit in the defence industry is now limited by the state and amounts to 5-7% in the industry. This limits the ability of companies to develop more actively, modernise their production, and invest sufficient funds in R&D (research and development), i.e. in the development of innovations. The exception is drones and EWs, where companies can earn up to 25%," Yanchenko said.
She also emphasised that lifting the ban would expand production, reduce the cost per unit, and make Ukrainian weapons more affordable for the Armed Forces.
