KYIV, July 8 — Ukraine’s defence industry, which inherited a substantial portion of the Soviet Union’s military-industrial capacity after 1991, is now seeking to close a critical gap in its arsenal: the domestic production of advanced interceptor missiles such as the Patriot system. According to officials familiar with the matter, a new licensing arrangement under discussion could involve technology transfer and co-production with RTX or other Western partners, potentially at facilities in western Ukraine that are less vulnerable to Russian strikes.
The record shows that Ukraine’s defence industrial base has deep roots. After independence in 1991, Kyiv took control of major Soviet-era facilities including the Antonov aircraft plant, the Kharkiv Morozov Machine Building Design Bureau, which produces tanks, and the Luch Design Bureau, which focuses on missiles.
The state-owned conglomerate Ukroboronprom, established in 2010, now oversees more than 100 enterprises across the country. Since Russia’s 2022 invasion, Ukraine has dramatically expanded its domestic production of unmanned aerial systems. The country produces the Bayraktar TB2 drone under license from Turkey, and has developed a wide range of FPV, or first-person view, kamikaze drones.
In 2023, according to industry figures, Ukraine produced over 100,000 FPV drones and has stated an ambition to manufacture 1 million in 2024. The Neptune anti-ship missile represents a significant domestic achievement.
The record confirms that a Neptune missile was used to sink the Russian cruiser Moskva in April 2022, a strike that altered the naval balance in the Black Sea. But complex systems like Patriot interceptors require advanced guidance and propulsion technologies that Ukraine has not previously manufactured. The new license under discussion would address this shortfall.
According to the statement, the arrangement could see production moved to facilities in western Ukraine, which have been less exposed to Russian long-range strikes compared to plants in the east and centre of the country. The strategic context is clear. Ukraine’s ability to manufacture its own interceptor missiles would reduce dependence on foreign stockpiles and shorten supply lines at a time when Western inventories have been strained by nearly four years of war.
Western partners have provided Patriot batteries to Ukraine, but the missiles themselves are expensive and complex to produce in sufficient numbers. The Kharkiv Morozov Machine Building Design Bureau, located in a city that has faced repeated Russian bombardment, continues to produce tanks but has had to adapt to wartime conditions.
The Luch Design Bureau, which developed the Neptune, has demonstrated that Ukrainian engineers can produce effective weapons systems when given the necessary components and guidance technology. What to watch next. The outcome of the licensing negotiations will determine whether Ukraine can close the gap between its growing drone and missile production and the need for advanced air defence interceptors.
If the technology transfer proceeds, it would mark a significant step in the evolution of Ukraine’s defence industry from a Soviet-era inheritance to a modern, Western-integrated production base.
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