GovDiscovery AI Podcast with Mike Shanley

Episode 69: Ukraine Defense & Rebuild – Opportunities, Challenges & Trends for Industry

Date: November 13, 2025
Guest: Irina Paliashvili, President and CEO of the U.S.-Ukraine Business Council (USUBC)
Host: Mike Shanley

Episode Overview

This episode explores the rapidly evolving landscape of Ukraine’s defense sector and reconstruction efforts amidst ongoing conflict. Mike Shanley interviews Irina Paliashvili, head of the U.S.-Ukraine Business Council (USUBC), to dive deep into market entry strategies, key trends, partnership opportunities, and the business realities on the ground. The discussion provides actionable insight for industry players targeting Ukraine, with a particular focus on the defense market, recent reforms, and the pivotal role of public-private partnerships and international collaboration.

Key Discussion Points & Insights

1. About the U.S.-Ukraine Business Council (USUBC)

[01:03–02:48]

• USUBC is the largest Ukraine-focused business association outside Ukraine, celebrating its 30th anniversary.

• Membership spans nearly 240 organizations across sectors: U.S. firms, Ukrainian, European, Canadian, including those in defense, energy, minerals, IT, and agriculture.

• Defense sector membership has surged due to the war and recent U.S.-Ukraine economic initiatives.

   > “USUBC has nearly 240 members representing all key sectors of economy… the defense sector is one of the fastest growing sectors in our membership.”
   — Irina Paliashvili [01:40]

2. Defense Market Partnerships & Strategic Networks

[03:11–04:49]

• USUBC maintains offices in Washington, D.C., and Ukraine, with active engagement on both governmental and business sides (B2G and B2B).

• Secure, trusted platform for member facilitation.

• New emphasis on European partnerships due to an influx of EU companies eyeing collaboration with U.S. firms.

   > “Within this association there is a secure trusted platform for B2B engagement and B2G engagement both in the United States and in Ukraine.”
   — Irina Paliashvili [03:59]

3. Battlefield Testing & Market Entry: How to Get Started

[04:49–08:03]

• Pathways for defense companies vary by subsector; testing product effectiveness is a central need.

• Brave One cluster in Ukraine helps coordinate and centralize battlefield testing for international companies.

• USUBC introduces and supports members in accessing such resources and forums.

• For companies unable to travel to Ukraine (due to internal restrictions), Brave One is expanding with events in the U.S. and Poland.

   > “What they are looking at Brave One, they are looking at more and more US companies coming to Ukraine to utilize this opportunity for testing.”
   — Irina Paliashvili [06:28]

4. On-the-Ground Presence vs. Remote Partnerships

[07:25–10:07]

• Both models are viable: organizations can be successful with or without direct, physical presence in Ukraine.

• Some U.S. companies set up representative offices or co-production with Ukrainian partners; others operate remotely due to security or institutional reasons.

• Networking with parallel associations (ISOA, BENS, AUVSI) greatly enhances opportunities and synergies.

   > “Our members do both… We have members who are opening rep offices in Ukraine, and we have members who don’t travel because of internal restrictions.”
   — Irina Paliashvili [08:03]

• Valuable to leverage connections not only at the government level but through other business councils and sector-specific platforms.

5. Case Studies of Success

[10:49–12:14]

• Companies can progress from zero Ukraine knowledge to opening local offices or joint ventures within a year.
• “Those members who travel frequently or have domestic local presence in Ukraine… their success comes much faster.”
   — Irina Paliashvili [11:54]

6. Regional Strategy: Kyiv and Beyond

[12:14–13:32]

• Kyiv remains a central base, but regions like Dnipro, Lviv, and Odessa now offer distinctive opportunities, sometimes nearer the front (with higher risk).
• Examples: Ukrainian Freedom Fund (Kyiv-based but frontline-active); American University (branches in Kyiv and Nikopol).

7. Market Dynamics: Needs, Maturity & Adaptability

[13:32–18:43]

• The Ukrainian defense market is extremely dynamic—needs and procurement priorities shift rapidly, often within months.
• Success depends on agility and up-to-date market intelligence, not only from associations but through ongoing dialogue with Ukrainian private defense companies and military units.
• Sector has shifted from state-owned monopoly (Ukroboronprom) to a diverse, competitive landscape with many private and startup OEMs, especially in defense tech.
• Key challenges include funding, scaling, and rapid IP transfer.
• Speed of adaptation is vital: “Very quick reaction… being very well informed… The same speed is required from Western companies, from American companies.”
   — Irina Paliashvili [17:41]
• Example: Western firms must be prepared that what succeeded two years ago may no longer be relevant due to front-line realities and evolving technologies.

8. Defense Procurement Reforms & Frontline-Driven Needs

[18:43–21:59]

• Major reform: Military units now drive procurement, submitting direct requests via DoD Chain Defense Platform (“Amazon of Defense”).
• Response times for procurement and delivery have shortened dramatically (weeks, sometimes as few as 8 days).  > “That's a big change… civil servants at the Ministry of Defense basically telling the front what they need—now, it's a complete opposite, which is excellent.”
   — Irina Paliashvili [19:47]
• Brave One operates its own marketplace, now better coordinated with official defense procurement.

9. Roadblocks & Misperceptions

[21:59–24:55]

• U.S. companies need to adapt to a dynamic, sometimes chaotic environment and avoid assuming Ukraine is a “wild east.”
• Underestimating the need for professional legal and financial counsel is a common pitfall—Ukraine’s legal and regulatory environment is mature and demands due diligence.
• “Don’t assume that you come to Ukrainian market and you can do whatever you want. It’s not a wild east anymore. It’s a pretty structured legal system.”
   — Irina Paliashvili [24:35]

Notable Quotes & Memorable Moments

• On the pace of change:
   > “Something that was important and needed two years ago, today these priorities are changing. So one of the keys to success is to be very dynamic.”
   — Irina Paliashvili [14:38]

• On company adaptability:
   > “Unfortunately, we have seen a lot of corporate bureaucracy… (but) those who can adjust very quickly… get much better success.”
   — Irina Paliashvili [15:08]

• On legal due diligence:
   > “When US companies go into any other market, start with hiring lawyers, with understanding the legal environment. When they come to Ukraine, they don’t expect that this is necessary. And it is necessary.”
   — Irina Paliashvili [23:33]

Timestamps for Key Segments

• Introduction to USUBC & Role in Ukraine’s Defense Market — [01:03–04:49]
• Testing and Market Entry (Brave One, Cluster Models) — [04:49–08:03]
• Physical Presence vs. Remote Partnership — [07:25–10:07]
• Case Studies & Regional Office Strategies — [10:49–13:32]
• Current Market Dynamics & Evolving Needs — [13:32–18:43]
• Procurement Reform & Front-Line Driven Needs — [18:43–21:59]
• Addressing Roadblocks & Legal Environment — [21:59–24:55]
• How to Join USUBC, Events, Member Vetting — [25:09–26:33]

How to Engage with USUBC

[25:09–26:33]

• Join via usubc.org, where all membership details and dues are outlined.
• Rigorous vetting and Know Your Customer process for maintaining a trusted member community.
• Membership offers personalized networking, governmental and business engagement, and connections to both the U.S. and Ukrainian capitals.

Resources Mentioned

• https://usubc.org
• https://govdiscoveryai.com
• http://www.konektid.com

Tone: Professional, candid, and pragmatic. Both host and guest emphasize adaptability, partnership, and the necessity of on-the-ground intelligence and due diligence for successful engagement in Ukraine’s dynamic defense and rebuild markets.

To sum up:

• The Ukrainian defense market offers enormous opportunity but demands speed, flexibility, and up-to-date intelligence.
• Both government and battlefield contacts are essential for market entry and success.
• The USUBC serves as an invaluable connector and advocate for organizations seeking to navigate these challenges.