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Ukraine–US Joint Venture Will Manufacture Critical Ammunition Chemicals

by Roman Cheplyk
Tuesday, July 15, 2025
2 MIN
Ukraine–US Joint Venture Will Manufacture Critical Ammunition Chemicals

“Ukrainian Defense Industry” and D&M Holding set up a U.S.–based plant to secure urgently needed propellant inputs

Deal Snapshot

Item Detail
Partners JSC Ukrainian Defense Industry (UDI, ex‑Ukroboronprom) & D&M Holding Company (USA)
Structure 50‑50 joint venture incorporated in the United States
Product line Specialized energetic and stabilizing chemicals used in artillery and small‑arms ammunition
Signatories Oleg Hulyak (UDI CEO) · Daniel Powers (D&M CEO)
Witnesses U.S. Special Envoy Keith Kellogg · Ukrainian strategic adviser Oleksandr Kamyshin · UDI board chair David Lomzharia

Why This Matters

  1. Supply‑chain breakthrough
    Special propellants and additives have been a bottleneck for Ukrainian ammo plants; domestic output is limited and imports are vulnerable to disruption.

  2. Safe production footprint
    Locating the plant in the U.S. shields it from missile strikes and enables 24/7 operation under NATO‑grade safety protocols.

  3. Strategic pivot from buying to making
    UDI says the venture marks a shift toward “production independence,” complementing recently announced drone and weapons JV deals in Denmark and the U.S.


Next Steps & Timeline

Phase Target Date Milestone
Engineering & permitting Q4 2025 EPA approval, site selection, equipment order
Construction start H1 2026 Ground‑breaking of modular chemical lines
Initial production Q4 2026 First batches shipped to Ukraine under DoD export license

Context

  • Ammunition squeeze: Ukraine fires tens of thousands of shells monthly; shortages of single‑base propellant and stabilizers have slowed local assembly lines.

  • Plan B strategy: Kyiv is diversifying supply via joint ventures (drones with a U.S. firm, munitions with Denmark) in case foreign aid fluctuates.


Bottom line: The new U.S.‑based joint venture plugs a critical gap in Ukraine’s ammunition supply chain, giving Kyiv a secure source of specialty chemicals and pushing its defense industry further toward self‑reliance.

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