The following is the March 11, 2025 edition of our Ukraine Business Roundup weekly newsletter. To get the biggest news in business and tech from Ukraine directly in your inbox, subscribe here.
For all the hype around foreign weapons producers setting up shop in Ukraine to help it fend off Russia’s invasion, they have little to show for it.
With the exception of the Prague-domiciled conglomerate Colt CZ, which has set up assembly of its Bren 2 assault rifles inside Ukraine, reporter Kollen Post writes in his latest.
The Ukraine-assembled rifle — dubbed the “Sich” for the center of life of the Ukrainian historical nomad-warrior Cossacks — offers swappable components for alternating between Soviet and NATO calibers.
Ondrej Bohac, head of public sector at Colt CZ, said that something in the “upper tens of thousands” are already in Ukrainian hands and “tens of thousands should be assembled (in Ukraine) this year.”
The company’s ultimate goal is to “get rid of Ukrainian dependence on Soviet weapons, like the AK-47, and not only on the weapons themselves but also on the ammunition, which is still produced mainly in Russia and Belarus,” Bohac told Post.
Ukraine does not seem close to running through its old stockpiles of ammunition, but as with the conversion from Soviet 122 and 152 mm artillery to NATO-standard 120 and 155 mm, the transition is a long-term Western turn.
Many international arms giants have announced plans to build their wares inside of Ukraine, ranging from Rheinmetall to Northrop Grumman to Baykar, but those projects have mostly stalled out, writes Post.
Colt CZ is one of the first to set up production, putting the firm in a relative frontier position. Its experience will be a bellwether for NATO-based weapons manufacturers expanding to Ukraine.
Read the full profile here.
Central bank raises key rate, again
Ukraine's Central Bank raised the key policy rate from 14.5% to 15.5% per annum from March 7, adding that it was ready to take further steps to curb growing inflation in the country.
The move marks the second raise of the key policy rate since the beginning of 2025. In late January, the central bank raised it from 13.5% to 14.5%.
Inflation reached its highest level in about 18 months in January as a result of a lower harvest, growing business costs, particularly energy, and continued Russian attacks. Price growth was expected to peak sometime in the middle of this year, but tense relations with the Donald Trump administration have soured expectations.
Pyshnyi also warned of increasing risks due to less favorable economic trends caused by "further geopolitical polarization of countries" and "the corresponding fragmentation of global trade."
Minerals deal: Will it ever happen?
After the Oval Office showdown a couple of weeks ago and the subsequent collapse of the minerals agreement, everyone in town is wondering what’s up with the deal.
Some reports have suggested that in retaliation for an argument in the White House, Trump was negotiating for a “better deal.” But multiple sources have told the Kyiv Independent that the details of the agreement haven’t changed, and that it’s more a matter of when the two sides will sign it — which remains unclear.
It could all hinge on this week’s meetings in Saudi Arabia. Trump's Middle East envoy Steve Witkoff told Fox News that he was “really hopeful” that President Volodymyr Zelensky would return to the U.S. to sign the deal in the near future.
What else is in the news
Ukraine to buy 4.5 million FPV drones in 2025
Ukraine’s government plans to spend $2.6 billion purchasing 4.5 million first-person-view (FPV) drones this year as part of a large-scale effort to equip its military with advanced technologies, the Defense Ministry said on March 10. Ukraine purchased 1.5 million drones in 2024, with 96% of spending going to Ukrainian producers.
US officially closes 83% of USAID programs
A Since Russia launched its full-scale invasion of Ukraine, USAID has provided $2.6 billion in humanitarian aid, $5 billion in development assistance, and more than $30 billion in direct budget support to Kyiv. The agency funded school reconstruction, bomb shelters, critical energy repairs, and civil society initiatives.
Ukraine’s DTEK gas production facilities shut down after Russian attack
A Russian attack on Ukraine’s energy infrastructure overnight on March 7 forced Ukraine’s largest private energy company DTEK to shut down one of its gas production facilities in Poltava Oblast. Meanwhile, DTEK is in talks with U.S. suppliers to bring more natural gas to Europe, Wall Street Journal reported.
Ukraine signs LNG deal with Poland’s Orlen amid Russian attacks
Ukraine's largest state-owned energy company, Naftogaz, and Poland's petroleum refineries company, Orlen, have signed a contract for the supply of approximately 100 million cubic meters (mcm) of liquefied natural gas (LNG), Naftogaz announced on March 7. As Russia continues targeting Ukraine’s energy infrastructure, domestic gas production has declined due to Russian strikes, forcing Ukraine to increase imports.
Ukraine receives $970 million from UK under G7 loan covered by Russian assets
Ukraine has received 752 million pounds ($970 million) as the first installment of the U.K.'s contribution to the G7 loan covered by frozen Russian assets, Prime Minister Denys Shmyhal announced on March 7. "The funds will go towards strengthening Ukraine's defense capabilities," Shmyhal said on X.
