Economic Potential of the Ukrainian Defense Industrial Complex in the Context of the Development of the Ukrainian Stock Market

Abstract

The article examines the economic aspects of integrating the Ukrainian defense-industrial complex (DIC) into the European defense space. The impact of the war in Ukraine on the development of the defense industry and the growing demand for military equipment and weaponry is analyzed. The study highlights the importance of attracting investments to expand production capacities, modernize technology, and adapt to NATO standards. The potential for Ukrainian companies to participate in joint projects with European defense manufacturers is examined, as well as their possible economic impact. Special attention is given to the role of the stock market in financing the development of the defense industry. The mechanisms through which the issuance of stocks and bonds, as well as the creation of specialized investment funds, can contribute to attracting capital, increasing enterprise liquidity, and forming a stable financial base for growth are identified. The study concludes that integrating Ukraine’s defense industry into the European defense system could become a key driver of the country’s economic development, creating new jobs, attracting foreign direct investment, and strengthening Ukraine’s defense capabilities. At the same time, the main challenges that need to be addressed are identified, including the need to reform the defense industry management system, enhance the competitiveness of Ukrainian manufacturers, and adapt to EU regulatory requirements.

To achieve the goals and fulfill the tasks set in the research process, a set of methods was used, including: system analysis to consider integration as a complex system; analysis and synthesis to systematize data on the current state of the Ukrainian defense-industrial complex (ОПК) та його взаємодії з європейськими партнерами; порівняльний аналіз для зіставлення показників розвитку компаній ОПК України та країн ЄС; статистичний аналіз для обробки кількісних даних; метод графічного  аналізу для прогнозування тенденцій зміни котирувань акцій компаній, а також аналіз документів та інформаційно-аналітичний метод для опрацювання теоретичних та практичних матеріалів.