Since Russia launched its full-scale invasion of Ukraine, Bulgaria has witnessed a historic surge in arms exports, totaling 13 billion leva (6.65 billion euros). This remarkable increase underscores the country’s expanding role in Europe’s defense network.
Economy Minister Petar Dilov highlighted that the defense sector has become a major pillar of Bulgaria’s economic growth, now contributing over 4% of the nation’s GDP. The growth is particularly evident since 2022, reflecting the country’s strengthened industrial capacities and global security demands.
VMZ-Sopot, Bulgaria’s state-owned arms manufacturer, exemplifies this expansion. In 2021, the company recorded revenues of 191 million leva. Last year, sales surged to 900 million leva, and in 2025, the company surpassed the symbolic 1 billion leva milestone. This growth reflects both domestic investment and heightened international demand.
The company currently employs roughly 5,000 people, adding nearly 350 new positions in the past year alone. Average gross monthly salaries at VMZ have reached 2,500 leva, boosting household incomes and demonstrating the sector’s broader socio-economic impact.
Bulgaria’s century-long tradition of arms production, coupled with modernized facilities, has positioned the country as a critical supplier to European defense initiatives. The sector’s revenue growth has been instrumental in maintaining national economic stability, even amid broader European challenges.
According to the Ministry of Economy, arms industry revenues have exceeded typical levels by 10 billion leva since the Ukraine conflict began. Entire regions now rely on this boom, with the industry underpinning wage increases, pension support, and overall regional development.
While Bulgaria’s contribution to the Ukraine war is commercial rather than through direct donations, the economic benefits are evident. Arms exports have strengthened the nation’s financial standing while simultaneously reinforcing Europe’s collective defense capabilities.
Experts note that the defense sector’s rapid expansion highlights Bulgaria’s strategic advantage, with both state-owned and private manufacturers capitalizing on global security needs. The industry’s growth trajectory indicates continued economic significance for the country in the coming years.
As Europe continues to navigate the implications of the conflict in Ukraine, Bulgaria’s arms sector stands out as a critical economic and strategic player. Its contribution to employment, industrial modernization, and national GDP underscores a unique intersection of commerce and security.
The historic surge in arms exports is reshaping Bulgaria’s economic landscape, illustrating how global conflicts can simultaneously challenge and boost national industries. Analysts predict sustained growth as long as geopolitical tensions maintain demand for European defense resources.
Bulgaria’s experience demonstrates the profound impact of defense manufacturing, not only on national security but also on economic resilience, employment, and regional development. The country now occupies a central role in Europe’s defense-industrial framework.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members