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The Change in Government and Fedorov’s Resignation: What This Means for Ukraine’s Defense Technologies

July 17, 2026

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On July 14, the Verkhovna Rada approved the resignation of Prime Minister Yulia Svyrydenko, and the entire Cabinet of Ministers stepped down along with her. The most high-profile consequence of the reshuffle was the dismissal of Mykhailo Fedorov from his post as defense minister—a decision that brought people onto the streets in a dozen cities and triggered a chain reaction of resignations. At the same time, the Ministry of Digital Transformation got a new head, and the defense sector, around which the conflict erupted, continues to set hiring records. Here’s who is now leading the key ministries and why these decisions directly affect the tech market.

Half a Year at the Ministry of Defense and a Farewell Briefing

Mykhailo Fedorov took the helm of the Ministry of Defense on January 14, 2026, moving there after more than six years at the Ministry of Digital Transformation. According to DOU, talk of his possible replacement emerged on the eve of the government reshuffle, and sources cited a conflict with the Commander-in-Chief of the Armed Forces of Ukraine, Oleksandr Syrskyi, resistance to reforms from part of the military leadership, and the interests of individuals affected by audits within the ministry as likely reasons.

Fedorov himself presented his version of events at a briefing on July 16. According to him, just one month after his appointment, he conducted an audit of the Ministry of Defense and proposed to the president that the Commander-in-Chief and the Chief of the General Staff be replaced, since the current system of military command was hindering technological changes. The minister claimed that his initiatives had begun to be blocked and that the allocation of resources among units is still being done manually. “I don’t need the position of defense minister for the sake of the position itself. I need it to win the war,” Fedorov said.

Among his team’s achievements, he cited the disruption of Starlink service to Russian troops, the contract for Swedish Gripen fighter jets, the launch of the Drone Deal export program, and the overhaul of the drone procurement system. Vector reports a> that Fedorov declined an offer to become an advisor to the president, and following news of his resignation, he received calls from foreign ministers and heads of technology companies, including Palantir CEO Alex Karp.

The Change in Government and Fedorov's Resignation: What This Means for Ukraine's Defense Technologies - news-en

Protests and Resignation in the Air Force

On the morning of July 16, protests against Fedorov’s dismissal began in Kyiv and at least ten other cities. According to a DOU report, several hundred people gathered at Ivan Franko Square in the capital carrying cardboard signs with the slogan “Fedorov—My Minister” and demanding Syrsky’s resignation. Military personnel and members of parliament were spotted among the participants.

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The personnel decision also caused a stir within the military. Deputy Commander of the Air Force Pavlo Yelizarov has resigned, reports AIN. In his report, he described Fedorov as the initiator of strategic reforms in air defense, the blocking of which would result in casualties and destruction. At the same time, Yelizarov expressed a desire to continue serving in the Armed Forces of Ukraine.

Zelenskyy commented on the situation with restraint: Fedorov and Syrskyi were unable to establish effective cooperation, and the president acknowledged his own share of responsibility for this. On the evening of July 16, he instructed Yevhen Khmara—head of the SBU’s “Alpha” Special Operations Center, who has experience with long-range technological operations against Russia—to serve as acting Minister of Defense. Once the legal procedures are complete, the president plans to submit his nomination to the Verkhovna Rada.

The Ministry of Digital Transformation has also changed leadership

In parallel with the drama surrounding the Ministry of Defense, Oleksandr Bornyakov’s seven-year tenure at the Ministry of Digital Transformation has come to an end. For the past six months, he had been leading the ministry as acting minister, and his candidacy was being considered for the position of full-fledged minister. According to Vector, the Verkhovna Rada instead backed Oksana Ferchuk—Deputy Minister of Defense for Digital Development, who has over 25 years of experience in the telecommunications and IT sectors. Her career includes launching Viasat in Ukraine and holding leadership positions at Nova Poshta, Zakupky.Prom.UA, the Vchasno service, and the postal operator Justin.

Summing up, Bornyakov mentioned more than ten Ukrainian “unicorn” companies that have grown within the Diya City ecosystem, over 4,500 residents, and 93 billion UAH in taxes paid, as well as the world’s first defense technology marketplace, which has attracted over $220 million in private investment. It is telling that both key technology ministries are now headed by people directly involved in the digital transformation of defense.

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A Market Growing Faster Than Political Cycles

Personnel decisions within the government are coinciding with unprecedented growth in the defense segment of the IT market. According to a DOU study, defense companies posted 3,518 job openings in the second quarter of 2026—a 14.6% increase from the first quarter. In the first six months of the year, 6,523 new deftech job openings appeared, exceeding the total for all of 2025. Defense job postings now account for 17% of all job openings on DOU.

Companies are most actively seeking specialists in Hardware, Embedded, QA, and Project Management, and among developers—those with knowledge of C++ and Python. Competition among candidates has also increased: on average, more than ten people apply for each opening. Kyiv leads geographically with 2,922 openings for the quarter, while Dnipro and Odesa are seeing significant growth.

These figures explain why the market reacts so nervously to political shakeups. Industry representatives surveyed by DOU warn that the greatest risk lies in the simultaneous replacement of the leadership team, the reversal of previously made decisions, and the loss of institutional memory. Ragnar Sass, co-founder of the Darkstar fund, states outright that Fedorov’s resignation could scare off large investment funds, for which the predictability of rules—from export policy to long-term contracts—is crucial.

The Main Risk Is a Pause

Technology on the front lines changes within weeks, so even a delay of several months in procurement or scaling can render a development obsolete before it reaches widespread use. The profiles of the new leaders, however, differ. Ferchuk brings a strong digital background and experience implementing IT systems at the Ministry of Defense, while Khmara is a security official whose strengths, according to Zelenskyy, include the effectiveness of long-range operations and his leadership of “Alpha.” Whether this signals a continued commitment to the digital transformation of the military will be revealed by the first decisions of the new Ministry of Defense leadership. Meanwhile, the market is already signaling, through job openings and investments, its support for continuing the initiatives already underway.

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