21-02-2025
Idex 2025: Ukraine defence firms woo foreign buyers in hope of deals when export ban ends
Ukrainian defence companies are wooing potential foreign buyers with "combat-tested" weapons at the Middle East's biggest defence exhibition in Abu Dhabi, in hope of capturing new markets once a government-imposed ban on arms exports is lifted. Ukraine's defence industry stands, housing both state-owned and private companies at the International Defence Exhibition (Idex), were packed with visitors keen to know more about products on display, from drones to ammunitions and military technology and weapons systems that exhibitors say have proven their capabilities on the battlefield during the three-year war with Russia. "It's reliable, it's battle-proven, it's a reasonable price and one of our advantages is that we can produce them in big volumes,"Sergii Goncharov, chief executive of National Association of Ukrainian Defence Industries (NAUDI) told The National on the sidelines of Idex. "We have a growing army ... and we always need to increase our capacity." The Ukrainian government has imposed a ban on exporting weapons during its war with Russia as Ukraine defends itself against a much larger enemy. The country has pushed to accelerate the domestic weapons production to better arm its soldiers on the frontline to confront their well-equipped adversary. Ukrainian companies have transformed processes at their manufacturing facilities since the invasion, rapidly stepping up production of drones as well as other weapons. This week Washington and Moscow began talks aimed at ending the war that began with Russia's full-scale invasion of Ukraine in February 2022. US President Donald Trump cut Ukraine out of negotiations and appears more sympathetic to Russia, in an about-face in US policy that has rattled Ukraine and its European allies. NAUDI is showcasing 20 defence companies at Idex, mostly focused on unmanned aerial vehicles (UAVs). Exhibitors said they are at the defence expo primarily to update international buyers about their latest products and encourage foreign sales of military equipment and spare parts to Ukraine. Although an export ban remains in place, defence deals can take years to conclude and Ukrainian companies said they want to get a head-start on talking to prospective customers so that they are ready to speed up negotiations once the ban lifts. "We also have a diplomatic role to show that Ukraine still exists, still fighting, still providing high-end technology," Mr Goncharov said. Ukrspecexport, a state-owned company for export and import of defence products, is showcasing about 40 products at its stand, including laser-activated munitions and AI-driven drones. Ukrainian defence companies are mainly targeting buyers from Nato member countries, Middle East, Africa, Asia and Eastern Europe. Touting the latest Ukrainian UAVs, GPS-jamming systems, rockets and armoured vehicles that have been used in the war with Russia, the NAUDI boss said there has been "huge interest" at Idex. Ukrainian defence manufacturer UKR Armo Tech also unveiled its latest armoured vehicle, the GYURZA-O2, at the expo this week. The company, established in 2022 with 30 workers, now employs 1,500 people as it has boosted production capacity to meet orders from Ukraine's armed forces. "It's not allowed to export Ukrainian [arms] product now but we are looking at the future, we want to show potential customers our products and after our government allows us to sell abroad, these customers will know us," Mykola Riabyi, financial director of UKR Armo, told The National. The company is ready for international sales and partnerships and has received positive feedback in discussed during Idex, where it is targeting customers from the Middle East and Africa, he said. NAUDI's chief executive expects the Ukrainian government's ban on arms exports to be lifted this year following discussions with officials in 2024. "I'm pretty sure that the decision for opening up the exports will be made because 2024 was the year of high-intensity discussions that we need to start exporting our production," Mr Gonchorov said. "Starting from 2022, we launched new segments, technologies and export potential for prospective companies." Ukraine's defence companies can produce €30 billion ($31.5 billion) worth of weapons every year, but Kyiv can only afford to spend €7 billion to €10 billion, according to NAUDI. The solution to fill this gap is to start exporting Ukrainian military equipment or to encourage partner countries to buy Ukrainian products for the Ukrainian army, Mr Gonchorov said. Earlier this week, the UAE and Ukraine formally signed a Comprehensive Economic Partnership Agreement as they seek to boost trade and investment ties. President Sheikh Mohamed and Ukrainian President Volodymyr Zelensky held talks in Abu Dhabi as part of the Ukrainian leader's visit to the Emirates. The two leaders explored ways to strengthen partnerships in key areas such as the economy, investment, renewable energy and food security. The Cepa deal is a "good step for further co-operation and to discover each other's countries," even if the announcement does not include military equipment, Mr Gonchorov said. The UAE knows Ukraine as a reliable and high-tech partner who is "ready to start joint ventures and ready to share technology", he said. "If we increase our agriculture exports to the UAE for example, it will lead to growth in our economy, an increase in taxes from our companies and as a result, an increase in our defence budget." NAUDI is also urging Ukraine's partners is to "purchase from Ukraine for Ukraine". "One of our messages for our partners is that if you want to support Ukraine, you can easily order Ukrainian defence solutions for the Ukraine army, so that you're not only supporting the Ukrainian army, you're also supporting the Ukrainian economy, so you kill two rabbits with one stone," said Mr Goncharov. Exhibitors said their products are undergoing constant upgrades and modifications in response to the real-time requirements on the battlefield. "For example, the GPS jamming system has hugely evolved during the last three years because it's like a competition between the UAV and the jamming system and the counter-UAV," said Mr Goncharov. "This war is extremely technological for us. It's a mix between the First World War with trenches and fortification, and Third World War with artificial intelligence and high-precision weapons ... for us it's a huge challenge, for Ukraine it's a huge tragedy." At the opposite end of Ukraine's pavilion, Russian defence companies were out in full force with a massive exhibit of 200 products from companies such as Kalashnikov, UVZ and Shvabe. Russian state arms exporter Rosoboronexport featured armoured vehicles, combat modules, artillery, ammunition, anti-aircraft systems and small arms. One of the products on display was the T-90MS 'Breakthrough' tank that has been upgraded based on the what Russia calls its "Special Military Operation" in Ukraine. Russia's arms exports are continuing to its foreign customers, despite the Ukraine war, one of the industry's top officials said. "We see great demand for our equipment. The portfolio [of exports] is more than $60 billion. We understand that in the current situation we have to supply a lot to the Russian army, but at the same time, the production capacity in increasing," Sergei Chemezov, the head of Russian state industrial conglomerate Rostec, said at a media briefing during Idex. "We increase our potential for exports to our foreign partners."
