Ukraine is a semi-presidential republic and the second largest country in Europe by land mass. Part of the former Soviet bloc, Ukraine has deep cultural, economic, and political bonds with its neighbour, Russia. Nevertheless, independent Ukraine has faced consistent threats to its territorial sovereignty from Russia since declaring independence in 1991.
Ukraine was the world’s largest importer of major arms between 2020 and 2024, during which its imports increased nearly 100-fold compared to the previous five years, according to SIPRI. This is a result of its war with Russia. Though the two countries have had a longstanding territorial dispute over Ukraine’s eastern provinces and Russia’s 2014 occupation of Crimea, the latest phase in war resulted from the February 2022 invasion of Ukraine by Russia.
Consequently, Ukraine was the world’s eighth largest military spender in 2024, according to SIPRI. It spent US$ 64.7 billion that year, representing 34 per cent of its GDP and 54% of total Ukrainian government spending. Three quarters of its military budget that year was for personnel costs, with almost all of the rest for purchase and maintenance of military equipment.
The Ukraine-Russia conflict has heavily affected global arms flows and resulted in significant growth for arms companies, particularly in NATO countries. The war is partly responsible for what SIPRI notes is a decade-long growth in global military spending. Since its latest phase in 2021, the Russia–Ukraine war is continuing to drive spending upward; SIPRI notes that it is higher than spending levels at the end of the cold war. For example, military spending in Eastern European countries grew by 164 per cent over the decade 2015–24. The Ukraine-Russia conflict also coincides with the 64% reduction in Russia’s volume of arms exports between 2020-2024, compared to the four years prior, likely due to their focusing production on Russia’s own military use, as well as sanctions by the US against countries purchasing Russian arms.
Russia’s loss has been NATO member states’ gain. According to SIPRI data, 26.5% of US major conventional weapons transfers between 2020 and 2024 were to fellow-NATO members, many of whom have joined the US in some or all of its recent wars. This increased from 15% on the previous four years.
Ukraine’s arms suppliers
Ukraine is a major recipient of arms from the world’s major arms-producing countries. Its top suppliers were all NATO members – the US (45%), Germany (12%), Poland (11%), the UK (4.2%), and France (3.2%). All its major arms suppliers also provide military financing directly to the Ukrainian armed forces.
The US and Ukraine
Ukraine was the US’ second largest arms recipient between 2020 and 2024, outranking even the US’ staunch ally Israel, second only to Saudi Arabia. It received 9% of all US conventional arms transfers in that period, according to SIPRI.
The US is a close military ally of Ukraine and has been heavily involved in its political development since its independence from the USSR. While it is not a NATO member, Ukraine with the US’ support joined NATO’s Partnership for Peace in 1994, as did Russia, until its suspension in 2014 following its annexation of Crimea. The US supported pro-EU presidential candidate Yanukovich, who won the Ukrainian presidency in 2010. In 2017, the Trump administration approved lethal arms sales to Ukraine, moving beyond the “nonlethal military assistance” allowed by the Obama administration.
Since then, Ukraine has benefitted from large-scale transfers of US equipment, with American companies profiting handsomely. Between 2020 and 2024, the US made US$ 1.21 billion in foreign military sales to Ukraine, according to US government data, well over half of total FMS sales to the country since 1950. Over half of the US Department of Defense’s 2024 supplemental spending, which totalled US$ 72.8 billion, was earmarked to fund financial aid, equipment and training for the Ukrainian military (US$ 48.4 billion), outranking even contributions to Israel.
Significant arms contributions in 2025 alone include: the Raytheon PATRIOT air defense system for US$ 105 million, a Starlink satellite communicatons system for US$ 150 million, US$ 825 million worth of missiles from Zone 5 Technologies and CoAspire, updgrades to its BAE Systems M777 Howitzers worth US$ 104 million, and a Raytheon HAWK Phase III Missile System worth US$ 172 million. Older acquisitions include 55 helicopters from Airbus (2018), General Dynamics Hydra-70 Rocket Systems (2023), and Teledyne Skyranger UAVs (2024). Ukraine also operates a fleet of Lockheed Martin F-16 fighter jets and Lockheed Martin ATACMS missiles.
A significant amount of American technology is in the service of NATO forces operating in Ukraine. In 2022, Northrop Grumman Global Hawks were deployed to monitor eastern Ukraine; Phoenix drones in the service of NATO have also been used to monitor the Finnish-Russian border.
Germany and Ukraine
Germany provided US$ 7.7 billion in financial military aid to Ukraine in 2024, the second highest donation to Ukraine. German contributions to Ukraine have comprised mainly: older weapons transferred from German army stocks, newly produced equipment from German defence companies, and modernised systems previously withdrawn from service, according to analysts from the Polish Centre for Eastern Studies.
These transfers include a large number of battle tanks and vehicles: Krauss-Maffei Wegmann Leopard 1 and 2 battle tanks, Rheinmetall Marder infantry fighting vehicles, and KNDS Gepard “cheetah” self-propelled anti-aircraft tanks. German guns acquired by Ukraine include Howitzer Panzerhaubitze 2000. Ukraine has also acquired air defence systems from Germany, including the Diehl IRIS-T defence system.
Several German companies focused on drone development have provided products used by the Ukrainian military. These include Quantum Systems, which makes the Vector drone; it announced in 2026 that it was teaming up with Ukraine-based Frontline Robotics to mass produce small drones in Germany for Ukrainian use. Ukraine acquired HX-2 drones from Helsing, but halted further procurement in 2026 over its poor performance.
The UK and Ukraine
In 2025 the UK government reported that it had committed up to £21.8 billion for Ukraine since the 2022 invastion , including £10.8 billion in military aid, and will sustain “£3 billion a year in military aid until 2030 to 2031.” The UK is a key member of the Coalition of the Willing, a group of 35 countries prepared to support Ukraine in its conflict with Russia.
In 2025, Ukraine and the UK signed the Declaration on the One Hundred Year Partnership, which sets out the framework for cooperation, of which defence is the key pillar. That year, the UK provided Ukraine with turrets and missiles to shoot down Russian drones, as part of £ 600 million air defence package. The UK also financed the acquisition of 350 ASRAAM air defence missiles, working with MBDA UK. With Denmark, the UK supplied a Gravehawk defence system.
The UK administers the International Fund for Ukraine, established in 2023 as a funding mechanism pooling money across European governments for Ukrainian military procurement. Since 2022, Operation INTERFLEX has seen the UK military train Ukrainian troops.
British arms companies have profited greatly from the UK’s military commitments in Ukraine. MBDA Brimstone and Storm Shadow missiles are part of Ukraine’s arsenal, as are QinetiQ Banshee drones where they have been used to strike critical Russian infrastructure, reports Intelligence Online. The UK government has regularly supplied drones to Ukraine to assist their campaign against Russian forces; QinetiQ is believed to participate in the effort.UK firms including Babcock and BAE Systems have subsidiaries in Ukraine.
CAAT has prepared a primer on UK’s military financing to Ukraine with more detail.
Other NATO members and Ukraine
Ukraine has consistently sought NATO membership since before the 2014 annexation of Crimea by Russia. NATO includes northern, central and eastern European countries, whose governments are troubled by the precedent set by Russia’s invasion of Ukraine and thus have a strong interest in arming Ukraine.
Poland’s domestic defence industry has boomed since the war. The Polish Ministry of Defence reported that between 2022 and 2025 it had provided support packages exceeding 18 billion Polish złoty, around UK£ 3.7 billion. The Polish government for example financed Ukraine’s acquisition of arms from Polish companies worth €120 million in 2025; these include Mesko Piorun air-defence systems and HSW Krab Howitzer guns.
Norway has significantly financed Ukrainian defence procurement. It financed in US$ 312 million worth of purchases in 2025, which included F-16 ammunition and S-300 surface-to-air missiles. While not a NATO member, France and Ukraine signed a bilateral agreement in February 2024 that included additional military aid to Ukraine of up to $3.0 billion in 2024. In 2024, Sweden established a support fund to provide a total of US$ 2.4 billion in military aid to Ukraine between 2024 and 2026.
Ukraine’s defence industry and exports
Ukraine has a historically strong defence industry. In 1991, independent Ukraine inherited around 30 per cent of the Soviet arms industry, which comprised 700 enterprises, making it the “the most capable part of the newly independent Ukraine’s manufacturing sector”, according to SIPRI. Given its current conflict with Russia, Ukraine primarily produces equipment for domestic use. In 2025, Ukraine produced more than 50% of the weapons it uses on the front line, according to President Zelensky. Urkainian military production sites have been the frequent target of Russia air strikes.
Ukraine’s largest arms producer is JSC Ukrainian Defense Industry (formerly UkrOboronProm), which in 2025 achieved a 69 per cent year-on-year increase in arms revenues to US$ 2.2 billion, according to SIPRI. The all-round manufacturer makes small arms, tanks, missiles and aircraft; it has joint ventures with German giant Rheinmetall and with Dutch KNDS. Other companies include Antonov, which makes military planes, Motor Sich, which makes engines, and Fire Point, which makes the Flamingo deep-strike weapon. UAE-based EDGE Group was seeking to acquire a stake in the company in late 2025.
Ukrainian companies have made significant advances in drone production and the military has deployed them extensively against Russian targets. More than 200 Ukrainian companies produce different types of drones, according to local media reports. These include the Aerorozvidka R-18 strike drone, and a range of so-called “Baba Yaga” heavy bomber drones, which include the Skyfall Vampire. Other drone companies include Ukrspecsystems, Skyeton, Vyriy, TAF Industries, Athlon Avia, and Terminal Autonomy, among others.
While being a major recipient of international arms transfers, Ukraine was also the world’s 20th largest arms exporter between 2020 and 2024. China (67% ) was its largest market, followed by India and Pakistan. JSC Ukrainian Defense Industry is the only Ukrainian company to feature among the world’s top 100 arms companies, according to SIPRI. The company is the world’s 52nd biggest arms company and made revenues of US$ 3.01 billion in 2024, all of which was for its arms work.
A number of international initiatives have sought to boost Ukraine’s domestic arms industry. These include the Build with Ukraine programme, which would see funding from the Denmark, as well as Norway, Germany, the United Kingdom and Lithuania, and the DefenceUkraine project, which appears to be based in Finland.
Ukraine and arms fairs
Ukraine hosts the annual Arms and Security fair and UA DefExpo, both of which showcase products widely from Ukrainian and foreign companies.
Ukrainian companies exhibit at most of the world’s biggest arms fairs, including Milipol, IDEX in UAE, and MSPO in Poland. Ukraine regularly sends official delegations to the UK’s major arms fairs, including DSEI.
