June 20, 2025
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Economy

Import substitution in the aviation industry: specialists named the main challenges

Import substitution in the aviation industry: specialists named the main challengesSpecialists discussed the critical problem of the Ukrainian aviation industry’s dependence on Soviet components. Spare parts
stocks are being depleted, and domestic manufacturers require state support for modernization.
”, — write: unn.ua

Ukrainian manufacturers, experts, and representatives of state structures during the roundtable “Import Substitution in the Aviation Industry of Ukraine: Challenges and Opportunities” discussed critical industry problems, economic prospects, and the need for institutional support to accelerate the transition to national solutions, writes UNN.

Our main task is to keep our helicopters combat-ready, the maximum number of them ready to perform tasks, so that we provide support to our troops, maximize fire damage to our enemy, effectively perform tasks for evacuating the wounded, for air defense tasks, anti-drone tasks, and develop.

At the same time, the meeting participants emphasized the stable dependence of the domestic aviation industry on Soviet components, particularly in the defense equipment segment. It was noted that critically important elements remain without adequate alternatives, creating direct risks for defense capability. The complexity lies not only in the physical absence of nodes but also in the lack of technical documentation and standards.

Ukraine inherited a significant part of the defense industry complex of the former Soviet Union, along with it, it received a very serious problem and deep technological dependence on Soviet components. This dependence still remains an important problem in terms of modernizing Ukrainian enterprises, the defense industry, and infrastructure. (…) In aviation, all aircraft that are operated by us and were manufactured during the Soviet Union era, AN-24, AN-26, MiG-29, Su-24, Su-27, are still in operation and are currently used in combat operations, but many spare parts – engines, hydraulics, and electronics – are still Soviet models, and they are almost not produced in Ukraine.

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In turn, Yevhen Sokol, General Director of “Ktsena” company, noted that the enterprise currently uses spare parts that remained from those times and are scattered all over the world.

For example, in our case, we are talking about the An-32 aircraft, we use it in a firefighting configuration. Not many such aircraft were produced, and not many of them remain in the world. But certain spare parts and units can still be found. We are actually buying everything that is left and delivering it to Ukraine to our state enterprises for repair and further use. But these reserves will soon be depleted – there are not many of them anyway. And what to do next – honestly, I don’t know.

The economic feasibility and development potential of Ukrainian enterprises were also discussed. Ukrainian manufacturers are capable of mastering new technologies but require a comprehensive approach to infrastructure modernization and support for production capacities. However, there are currently no real and effective programs.

Until 2025, there was support in terms of taxation: value-added tax, profit tax, land tax, and customs duties. Unfortunately, these benefits have now been suspended. (…) We are trying to introduce new support tools for the aviation industry and will continue to work on this. So far, we have managed to do the following: a draft law has been prepared, which has already been submitted to the Verkhovna Rada, and which provides for the exemption of aircraft manufacturing entities from paying land tax. The law has not yet been adopted, but it has already passed review by the relevant committee and awaits a parliamentary vote. We are talking about relatively small amounts that enterprises paid to the budget and which could have been directed towards their development. In the future, we plan to introduce other support mechanisms, including through lending or leasing for aircraft manufacturing enterprises.

Additionally, participants reviewed technological and regulatory aspects. A representative of the Main Department of Civil Aviation of Ukraine outlined the problems of certification and documentation unification. He emphasized that state support must be systemic, and the regulatory framework must be adapted to the realities of wartime.

Based on the discussion results, participants agreed that import substitution requires not only technical solutions but also consolidated state policy with an emphasis on strategic planning, inter-industry interaction, and trust in the national manufacturer.

RecallTwo Ukrainian Mi-8MT helicopters, modernized by MS Avia-Grade as part of a state contract, are currently at risk of returning to the army without combat equipment following their handing over for overhaul. After the machines were transferred for overhaul, the installed weapons were dismantled and subsequently arrested by court order, despite the equipment meeting current Ukrainian standards. The contractor was not allowed access to the warranty procedures, making warranty fulfillment impossible. The reason for deeming the equipment “non-authentic” was its comparison with Soviet-Russian GOST standards, not Ukrainian technical specifications. The situation caused significant resonance due to the threat of equipment combat capability loss during the war.

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