What happened
Ukrainian defense-technology companies are projected to attract $200–250 million in 2026 through holding companies registered outside Ukraine, according to Ihor Fedirko, executive director of the Ukrainian Council of Weapons. About 95% of Ukrainian companies have incorporated abroad, while roughly 98% of DefTech investors invest through parent structures rather than directly into Ukrainian entities. The Ukrainian operations generally retain research and development, manufacturing, services and personnel. Companies use foreign parents or subsidiaries to channel capital into Ukrainian development, maintenance, modernization and expansion.
Why it matters
Foreign holding structures give Ukrainian defense companies access to capital that many funds cannot deploy directly in Ukraine because of investment mandates and legal, financial and political risks. The resulting funds support rent, salaries, research, production, servicing, modernization and expansion in Ukraine, while some ownership and financial flows remain abroad. The same approach is reflected in the Build with Ukraine initiative, under which Frontline Robotics, TAF Industries, Tencore, Airlogix and Roboneers reportedly signed joint-production agreements with partners in Belgium, Luxembourg, Denmark, Finland and Germany. Frontline Robotics says these arrangements can increase foreign orders and Ukrainian production when Ukrainian firms remain the exclusive suppliers of critical components.