“What’s Up With the Economy?” is a podcast by the Centre for Economic Strategy in cooperation with Hromadske Radio, supported by PrivatBank.
Every week, hosts Anhelina Zavadetska and Maksym Samoiliuk talk with experts, entrepreneurs, analysts, and government officials about what is happening with Ukraine’s economy.
While the podcast is held in Ukrainian, we decided to summarise each issue with the most important insights.
In the new episode — a conversation with Roman Sulzhyk, a member of the CES Supervisory Board, former banker at J.P. Morgan and Deutsche Bank, and now co-founder of the Resist.UA investment fund, which finances Ukrainian MilTech startups.
How the war created the prerequisites for the emergence of a new defense technology industry, why most MilTech funds are registered abroad rather than in Ukraine, and how MilTech can become a growth point for the economy after victory?
From volunteering to industry
The Resist.UA fund appeared at the end of 2022, when it became clear that Ukrainian engineers and entrepreneurs were capable of creating their own defense ecosystem. Its goal is to turn the volunteer movement into a stable industry that will continue to operate after the war.
Resist.UA became one of the few Ukrainian funds that systematically invest in Ukrainian MilTech. Alongside it operate dozens of foreign players — D3, MITS Capital, Darkstar — but Resist focuses on local teams creating technologies for the frontline: drones, communication systems, EW solutions.
«Our task then was to make sure that this industry would exist even after victory. We wanted to create proper companies right away so that, when victory comes, people wouldn’t scatter back to their “IT gigs,” but instead there would remain an industry exporting products worth several billion dollars a year and hiring people returning from the front — their comrades — giving them an opportunity to earn — that’s the least we can do», says Roman Sulzhyk.
The fund operates on the principle of long-term investment. During the war, it does not pay dividends and does not set profit as a goal — all resources are directed to production. This approach allows focusing on technology creation rather than short-term financial results.
The minimum investor contribution is $100,000. All partners understand that the return of capital is possible only after the end of the war.
«In fact, this is the first time in 30 years of our independence that we have a sector where foreigners stand and say: “We have $100 million, $200 million — we want to invest in Ukrainian MilTech.” This is truly a unique situation because no one knows what war or weaponry will look like in 5–10 years. But if you ask anyone which five countries in the world will have the best know-how in the military sphere in 10 years, Ukraine will be among them.»
Challenges of the MilTech market
One of the main problems of the industry is the weak protection of intellectual property in Ukraine. Because of this, most startups register their developments abroad. Foreign investors also hesitate to enter the Ukrainian market due to the lack of clear rules and the risk of pressure from state authorities.
«They do not trust our intellectual property protection system. Zelenskyy said this: we are against people taking away our engineers, our know-how, registering all of it somewhere in America or even Europe. It’s a Ukrainian invention, but it becomes American or European. We are for people registering here. If they later create joint production somewhere in Europe, they can do it, but the payment for patents should return to Ukraine. And I actually agree with that.»
The potential of the industry is great. According to Sulzhyk’s estimates, within two years after the war ends, Ukraine may export military technologies worth $2–5 billion annually, accounting for about 2% of GDP.
Ukraine has unique experience in the field of drones and anti-drone technologies, which attracts interest from EU and Asian countries. If the state ensures transparent rules, MilTech can become not only a point of economic recovery but also a sector that integrates Ukraine into the European security market.
How does Ukrainian MilTech of 2022 differ from 2025?
The Ukrainian MilTech industry has undergone a transformation from virtual non-existence in 2022, when only state-owned enterprises operated, to the emergence of hundreds of innovative companies by 2025.
This new ecosystem is characterized not only by quantitative growth but also by the emergence of two parallel paths of development. On one hand, a large layer of entrepreneurs has formed who have already earned hundreds of millions of dollars on state contracts (for example, in FPV drone production, which does not require special technologies) and now seek consolidation, buying up smaller startups and limiting their access.
At the same time, attracting investors such as Resist.UA, MITS Capital, or D3 has become the best protection for small companies from local manufacturers’ “pressure,” as the presence of Western capital raises the company’s status and ensures its support. Thus, the MilTech industry of 2025 is a living market where new, fair rules of the game are being formed.
The new elite of Ukrainian business
Sulzhyk is convinced that MilTech can form a new economic elite — people who create technologies, earn honestly, and keep capital in the country. He emphasizes that for the restoration and development of the economy, it is important not only to attract investment or produce high-tech weapons but also to nurture entrepreneurs with the right values.
«If we now bring in clean Western capital, first into this MilTech and then into other companies, and create a new class of owners aged 30–40 who are more decent — that will already be a completely different story.»
Sulzhyk adds that such entrepreneurs not only strengthen the economy but also form the cultural and social foundation for future generations, setting an example of responsible business conduct and long-term development strategies.
According to him, the key task is to create favorable conditions for innovation and support talented Ukrainians in their own country.
Taxation of luxury goods during the war
To the traditional question from the hosts — what’s with the economy — Roman replies that everything is fine thanks to partners who provide Ukraine with about $50 billion of support annually. Without it, the economy would have collapsed.
«It’s still important for us to do our work. We cannot continue importing all kinds of luxury goods, all these G-Wagons — I would tax all of that at 300% during the war. Expensive French wine — let it be taxed 300%. In other words, during the war, we cannot allow such boundless imports of everything we bring in.»
“What’s Up With the Economy?” is a podcast by the Centre for Economic Strategy in cooperation with Hromadske Radio, supported by PrivatBank.
The podcast is available in Ukrainian on different platforms by the link.
