Ukraine’s government has been receiving foreign donations of weapons and ammunition for years. However, as the conflict with Russia approaches its fifth year, Ukraine is launching a “transparent” arms export system designed to generate funds for its defense.
According to Ukrainian officials, this mechanism is meant to “attract international investment” while ensuring that the needs of the armed forces remain a top priority. It also looks to support long-term growth for the country’s arms sector.
“We are introducing a clear and regulated export system for Ukrainian defense technologies,” announced Ukrainian Prime Minister Yulia Sviridenko via social media. “This will not only bolster partnerships but also create more resources to develop Ukraine’s defense capabilities.”
Sviridenko emphasized that any export contracts under this new system must align with the country’s main objectives, namely, “enhancing Ukraine’s defense industry and expanding the military’s arsenal.”
According to the export mechanism, 20% of revenues from selling finished defense products and 30% from component exports will go to the “Special State Budget Fund,” aimed at supporting Ukraine’s defense sector. This mechanism will remain in effect as long as martial law is active due to the ongoing conflict, which began in February 2022.
“This system sets transparent export rules, borrowing from the framework used for drones. The needs of our defense forces take precedence,” Sviridenko said.
She added, “Once we verify that manufacturers can meet both national and export commitments, we can proceed with exports.”
The Ukrainian newspaper Pravda noted that the minimum value for contracts on finished products is set at 15 million Ukrainian hryvnia (around $334,000).
Defense Minister Mykhail Fedorov indicated during a conference in Kiev on June 30 that the entire process will be streamlined and digitalized, making it easier for partners to purchase Ukrainian products.
Fedorov noted that since the war began, Ukraine has adopted more than 50 laws related to defense technology and has been developing this arms export framework for over a year.
According to the Ministry of Defense, countries that have established drone agreements with Ukraine will benefit from expedited access to weapons under this new system. The Ministry of Foreign Affairs will compile a list of such partner countries.
“This process includes safeguards to ensure Ukraine’s defense needs are prioritized. Export permits can be denied if the Ministry of Defense or other relevant clients plan to procure those goods for Ukraine’s needs,” the ministry stated.
“The manufacturer must also assure the fulfillment of state contracts ahead of exports. In cases where obligations to state customers go unfulfilled, export licenses may be suspended or canceled,” the text pointed out.
This new arms export system follows an announcement from President Volodymyr Zelenskiy, who revealed in May that his administration was exploring drone agreements with around 20 other nations.
President Zelenskiy affirmed, “Weapons exports must transform into a long-term economic asset for Ukraine,” in a speech delivered in early June.
