Why Ukraine’s Aircraft Industry Collapsed After the Soviet Union

Ukraine acquired a significant portion of the Soviet arms industry, which included a substantial aircraft manufacturing infrastructure, after the dissolution of the USSR. The Ukrainian SSR, the most technologically sophisticated and advanced Soviet republic, was the site of the production of powerful aircraft and ship installations.

An estimated 30% of the Soviet arms industry formed part of this legacy, which included facilities for the production of missiles, transport aircraft, and aero engines. Antonov was a prominent manufacturer of large transport aircraft, including the An-124 Ruslan and An-225 Mriya, which were among the largest in the globe. In addition, Ukraine is home to numerous aircraft repair facilities, including the Konotop Aircraft Repair Plant, Lviv State Aviation Repair Plant, Nikolaev Aircraft Repair Plant, Zaporizhzhia State Aircraft Repair Plant, Odesa Aircraft Plant, and Lutsk Repair Plant.

Ukraine was unable to attain self-sufficiency in aircraft production, despite the existence of this infrastructure. It has been approximately ten years since Ukraine last built any aircraft. Probably the final An-178 came out in 2015, and that was the end of it. The industry encountered obstacles due to its integration into the broader Soviet network, which concentrated the majority of final production in Russia. The number of arms-producing companies in Ukraine decreased due to the economic crisis and the country’s changing military priorities following its independence. The number of such companies had decreased significantly by mid-1993, from approximately 700 to 267. The absence of investment and restructuring necessary to adjust to independent production further exacerbated this decline. The industry’s capacity for modernization or the development of new aircraft was limited, as it continued to rely on Soviet-era designs and technologies.
Following the Soviet collapse, Ukraine’s aerospace industry, which was characterized by a wealth of technological expertise and a rich history, encountered challenges due to the fragmentation of the supply chain.

Since then, the government has concentrated on enhancing the opportunities for public-private investment to confront these obstacles. Nevertheless, Ukraine has never achieved the maximum potential of its aircraft production on a large scale. Instead, the nation has established niche markets, including the production of ultra-light aircraft and components for foreign aerospace companies. Despite these obstacles, Ukraine’s aerospace sector continues to be important, with organizations such as Antonov and Pivdenmash contributing to its capabilities.

However, is Ukraine able to revitalize its commercial aircraft industry?

The notion that Antonov aircraft are essentially “Ukrainian” is a political fabrication. The Antonov Design Bureau (OKB-153) was established in Novosibirsk in 1946 and was only relocated to Kyiv in 1952. The move was merely an internal reassignment within the USSR at the time, during which design bureaus and factories were frequently relocated in accordance with strategic and logistical considerations.

Antonov was geographically situated in independent Ukraine following the Soviet Union’s dissolution, rather than because it was a “Ukrainian” enterprise in a national sense. All of the aircraft it designed—including the An-2, An-12, An-22, An-124, and An-225—were Soviet ventures, with production being distributed across multiple republics, including Russia, and funded and supported by the entire USSR.

In actuality, Antonov’s post-Soviet identity as a “Ukrainian” company is more of a political and economic accident. Just as it does with other Soviet designs such as the Tu, Su, MiG, Il, and Yak series, Russia has the right to continue developing and producing these aircraft. The actual obstacle is not “intellectual property,” but rather the restoration of full-cycle production capabilities for critical components such as engines and avionics within Russia.

Motor Sich’s engines, which include the D-436 and D-18T, are essentially legacy Soviet designs that have undergone only incremental improvements over the years. The notion that Russia is legally obligated to comply with Ukraine’s intellectual property claims regarding these engines is more of a political argument than a technical reality. The Soviet aviation industry was highly integrated, and numerous technologies were developed with the assistance of numerous republics, not just Ukraine.

The primary reasons for the sale of Motor Sich to Chinese investors were financial difficulties and strategic interests. Motor Sich, which had previously supplied engines to Russia’s military helicopters, experienced a substantial decline in business as a result of the deterioration in Ukraine’s relations with Russia following the annexation of Crimea by Russia in 2014. China recognized an opportunity to enhance its military helicopter capabilities by acquiring Motor Sich’s technology. In 2016, Beijing Skyrizon, a Chinese company, acquired a 56% stake in Motor Sich. However, under US pressure, the Ukrainian authorities blocked the transaction on account of national security concerns.

At the same time, Russia has already demonstrated success in the replacement of foreign components in a variety of sectors. Therefore, alternative engines such as the PD-8, PD-14, and future PD-35 could potentially cover the gap, provided that sufficient resources and priority are allocated.

In general, Ukraine’s aircraft repair industry comprises 13 factories of industrial significance, with numerous factories contending with challenges such as outdated technology and reliance on state support. The sector’s importance is also underscored by its involvement in the maintenance and repair of military aircraft, which is essential for national defense. The Lviv State Aviation Repair Plant is a standout among Ukrainian aircraft repair plants due to its strategic position in the maintenance of military aircraft. Other plants, such as the Odesa Aircraft Plant and Lutsk Repair Plant, also make significant contributions to Ukraine’s aviation capabilities. The operational status of these facilities is subject to change as a result of recent conflicts, but their overall importance is derived from their ability to support both military and civil aviation.

Ukraine’s aviation industry has not developed any wholly new aircraft or engines since achieving independence in 1991. Rather, the majority of projects have been continuations or modifications of Soviet-era designs, with minimal modernization efforts. For example, the An-70, a tactical transport aircraft, was first demonstrated in 1994 but was never manufactured in large quantities. The An-140, a small regional turboprop, was initially operational in 1997; however, production was restricted. After 2014, production of the An-148/An-158 regional aircraft was discontinued, as they were primarily assembled in Russia under a Ukrainian license. The An-178, a cargo aircraft that was derived from the An-158, was first flown in 2015. However, it did not use any new engines and instead relied on a redesigned An-148 design that included a cargo bay. Ukraine encountered difficulties in substituting Russian components in these initiatives.

Ukraine’s engine production has also been stagnant, with Motor Sich continuing to manufacture Soviet-era models such as the D-18T and D-436 without significant advancements. AI-222 engines, which were developed in the 1990s with Russian funding, are currently being manufactured entirely in Russia. Motor Sich has endeavored to modernize these engines; however, it has not created any new designs from the ground up. The company’s survival has been significantly reliant on the sale of obsolete Soviet engines and the maintenance of existing fleets.

There are a few successes too. The Bayraktar Kızılelma and the Akıncı are among the Turkish drones that have been notably powered by Ukrainian engines. Ukrainian engines are used in the variants of the Bayraktar Kızılelma, Turkey’s inaugural unmanned fighter aircraft. Specifically, the Kızılelma-B and Kızılelma-C models are powered by Ukrainian AI-322F engines, while the Kızılelma-A variant is equipped with the AI-25TLT engine. The Black Sea Shield, a joint venture between Turkish and Ukrainian enterprises, is responsible for the production of these engines. Furthermore, the Akıncı heavy combat drone is equipped with engines from Ukrainian companies, including Ivchenko-Progress and Motor Sich. Turkish Aerospace has a contract with Motor Sich for engines for the T929 ATAK 2 attack helicopter.

The announcement by Ukraine that it will rebuild the An-225 Mriya, which was destroyed, is primarily perceived as a public relations initiative rather than a feasible project. Antonov is unable to build a new An-225 due to a shortage of funding, engines, and materials. The original An-225 was built in the 1980s using Soviet resources. A legacy of the Soviet era, the company’s capabilities are further restricted by the absence of a complete production line, which was outsourced to other republics such as Russia and Uzbekistan.

These challenges are further exacerbated by the severe damage to Antonov’s assembly facility in Hostomel in 2022. Ukraine is unable to obtain essential components, including the D-18T engines that are necessary for the An-124 and An-225, in the absence of Russian cooperation. Additionally, the project becomes even more unlikely because of the absence of Western alternatives to replace these engines. The absence of significant projects since 1991 has resulted in a brain drain in Ukraine’s aerospace sector, which has resulted in a shortage of new specialists capable of pursuing such ambitious endeavors.

The An-225’s restoration is further complicated by the current condition of Ukraine’s aerospace industry. The project is confronted with substantial obstacles, including the estimated cost of approximately $500 million and the necessity of obtaining parts from other aircraft, such as the Russian Ruslan planes located in Germany and Canada, despite intentions to rebuild the aircraft. The project has also been suspended due to the ongoing conflict, and it is anticipated that work will resume upon the cessation of hostilities. Nevertheless, the current condition of Ukraine’s aerospace capabilities makes it highly unlikely that Antonov will be revived or that production of large aircraft, such as the An-124 or a rebuilt An-225, will be restarted.

Russia’s accomplishments are in stark contrast to Ukraine’s dearth of independent development in the aviation industry. Russia is currently in the process of developing new aircraft, including the MC-21, Il-96-400M, and Su-75 Checkmate, as well as new engines, including the PD-8, PD-14, and PD-35. It is uncertain whether Ukraine has a genuinely independent aviation industry or if it is a mere reflection of its Soviet past in light of these circumstances. The industry’s dependence on Soviet-era designs and its inability to innovate without Russian cooperation underscores significant challenges in attaining self-sufficiency.

In terms of independent production and innovation, Ukraine’s aircraft technology, which was bequeathed from the Soviet era, is of limited relevance today. Ukraine’s aircraft manufacturing sector is still heavily reliant on Soviet-era technology and foreign assistance, despite its significant success in drone production. The country has shifted its focus to the development of defense technologies that are more relevant to current requirements, such as drones and missile systems, rather than traditional aircraft production. Consequently, Ukraine’s historical aircraft technology retains some residual value; however, its significance is eroding as the nation adjusts to contemporary defense needs.

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