INDUSTRIAL POLICY FOR UKRAINE'S SURVIVAL Reversing 30 Years of Deindustrialization Brian Milakovsky| Volodymyr Vlasiuk May 2024 The Ukrainian state must play an active role in addressing war-induced market failures and the cumulative impact of 30 years of deindustrialization. Western partners should abandon opposition to Ukrainian industrial policies such as localization. To facilitate the continued growth and self-sufficiency of Ukraine’s innovative arms manufacturing sector the Ukrainian government should allow regulated exports. Western donors should increase their purchase of Ukraine-made arms for the country’s defense. Ukraine and the European Union must co-invest in decarbonization of metallurgy and other key industries to ensure that Ukrainian manufacturing is not marginalized by the European Green Deal.