New challenges for the defense industrial enterprises of Ukraine in the conditions of the global pandemic

Keywords: defense budget, defense industrial enterprises, defense equipment and weapon, global pandemic, Ukraine.


The global COVID-19 pandemic has made significant corrections to international trade in many countries around the world. The article is devoted to topical issues of identifying new challenges that have arisen at entities of the defense industry of Ukraine in the context of the COVID-19 pandemic. Comparative analysis of forced changes in defense budgets of different countries and statistical analysis of industries that are connected by supply chains with enterprises of the defense industry of Ukraine, which suffer from the introduction of quarantine restrictive measures, proves restrictions on interstate trade, disruption of domestic and global supply chains and significant losses in the economy. This situation may have medium-term consequences for the country's defense budget, and the Ministry of Defense of Ukraine will be forced to apply optimization plans for effective measures of such a scale as modern sequestration. India, Thailand, and South Korea are identified as the most risk-sensitive counterparties of Ukrainian defense exporters due to the reorientation of finances to the priority segment of medicine to eliminate the consequences of the pandemic. To minimize the risk of non-performance of contractual obligations, it is recommended to review the basic terms of supply of goods under the contracts with risk-sensitive counterparties and make adjustments to force majeure clauses in regard to epidemics, as well as possible revise the contract's payment terms.


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Author Biographies

Nadiia Skliar, Donetsk Law Institute, MIA of Ukraine, Kryvyi Rih, Ukraine.

Ph.D. in Economics, Post-Doctoral Fellow, Center for Security Studies, National Institute for Strategic Studies, Kyiv; Associate Professor of the Department of State and Legal Disciplines Donetsk Law Institute, MIA of Ukraine, Kryvyi Rih, Ukraine

Vitaliy Begma, National Institute for Strategic Studies (Kyiv, Ukraine)

Doctor in Economics, Professor, Chief Research Fellow, Center for Security Studies, National Institute for Strategic Studies (Kyiv, Ukraine)

Oksana Vrublevska, KLIVER LLC (Kyiv, Ukraine)

PhD in Economics, Director of  KLIVER LLC (Kyiv, Ukraine)


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How to Cite
Skliar, N., Begma, V., & Vrublevska, O. (2021). New challenges for the defense industrial enterprises of Ukraine in the conditions of the global pandemic. Amazonia Investiga, 10(37), 45-55.