What problems Ukraine is currently facing in arms procurement

Defense Express explores the difficulties Ukraine faces in arms procurement.

The international arms market is witnessing an unprecedented surge in prices and complexities in weapon transfers with commercial conditions. Ukraine is actively procuring arms in substantial quantities for its Defense Forces, not solely relying on external aid. However, the situation is far from problem-free as the urgent need for weapons clashes with the changed dynamics of the global arms market. The steep increase in weapon costs and production lagging behind demand is a reality faced not only by Ukraine but also by the rest of the world.

Volodymyr Pikuzo, head of the Defense Procurement Agency of Ukraine's Ministry of Defense, discussed these challenges in an interview with Apostrophe TV. 

Rising prices for weapons

"A 4-fold increase in the cost of ammunition in one year is our reality," stated Volodymyr Pikuzo. Moreover, not only shells are affected but also various products like the F-35, which saw a 1.5 times price increase.

“It is quite easy to explain why this happened. The defense market is subject to similar laws as the market for ordinary goods. That is, there is demand, and current industrial capacities cannot meet it, resulting in an increase in the price of weapons in general,” Defense Express explains.

However, the immediate need for weapons cannot be met solely by production facilities due to technological cycles and production volume issues. For instance, there are long waiting times for fighter jets, tank deliveries stretching until 2026 for some countries, and delays in receiving mine clearance equipment. Negotiations with manufacturers often lead to extended delivery times, such as "in 2025," as per the head of the Defense Procurement Agency of Ukraine's Ministry of Defense.

Consequences of the defense industry downsizing

The end of the Cold War brought a decline in defense industries due to downsizing armed forces and defense budgets worldwide. Large-scale production reduced as there were no new significant orders.

For instance, the production of Leopard 2 tanks for the Bundeswehr in the 80s saw 1050 tanks delivered in three years. However, after the Cold War, these tanks became surplus and were either sold off or given away, leading to a decline in production capacity.

The recovery of production capacity after such downsizing takes time, making countries that maintained their defense in good shape successful in the international market. Korea's readiness due to its proximity to the DPRK is a prime example.

Arms aid with conditions

Another issue with arms supplies to Ukraine, as mentioned by Volodymyr Pikuzo, is that assistance comes with certain conditions. This is not about the rule of not using Western weapons against Russian territory.

For instance, some weapons may be transferred for free, but the condition is that they must be repaired on Ukrainian territory. An example is the Italian howitzers, which required repair but could have bolstered the Ukrainian Armed Forces.

Initially, there were plans to buy them back, but an agreement was reached for a free transfer with the restoration condition.

"We hired a company based on the results of consultations with international partners, based on the results of studying their ability to repair a large batch of howitzers - I won't say the exact number - in two months... And our partners failed to fulfill their task. Now we are in court with them," said the head of the Defense Procurement Agency of the Ministry of Defense of Ukraine.

These are the prevailing rules of the international arms market today, and they must be acknowledged. This underscores the need to address both immediate concerns and the reality that certain types of weapons may have lengthy waiting times before production. “And so far there are no signs that this trend will change,” defense Express concludes.