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78% of Ukrainian defense companies have moved or plan to move production abroad – survey

61% of Ukrainian defence companies indicated that export was not possible.

Security risks have become the main reason for relocating capacities abroad for 89% of Ukrainian defense manufacturers.

According to the Tech Force in UA, a survey was conducted among 35 private defence manufacturers, LIGA.net reports.

61% of companies cited the inability to export their products, while 56% pointed to low volumes of state orders and restrictions on technology exports.

Seventy-eight percent of companies have already moved or plan to move production, IP/technology rights, and R&D offices abroad. The most common relocation destinations are Poland, the Czech Republic, the United States, Slovakia, and Estonia.

Manufacturers said they would keep capacities in Ukraine if they had access to exports, predictable and stable state orders, increased procurement volumes, and the ability to set up joint ventures with international partners.

Their products are most often procured directly by military units, as well as through the Ministry of Defense’s Defense Procurement Agency (DPA), local communities, international programs, and the Prozorro system.

Earlier, it was reported that the Ministry of Defence codified the Kolibri 13 FR1 transponder carrier. The product was created by TAF Industries at the request of and in cooperation with the Darknode unit of the Unmanned Systems Forces of Ukraine.

Earlier, it was reported that a team of engineers and developers from General Cherry, in close cooperation with defence units, has completed the development and is launching the General Cherry Bullet interceptor drone.