The government has approved the first transparent mechanism for the export of Ukrainian arms and defence technologies to partner states.
This was announced by Ukraine’s Minister of Defence, Mykhaylo Fedorov.
“The government has approved the first transparent mechanism for the export of Ukrainian arms. This was a task set by the President of Ukraine to ensure that Ukrainian... manufacturers have clear rules for working with international partners, can scale up production, attract investment and, at the same time, guarantee that the needs of the Ukrainian Defence Forces are met as a priority,” the Defence Minister noted.
The new mechanism establishes, for the first time, a unified procedure for cooperation between the state, manufacturers and foreign partners.
Under the new rules, countries participating in the Drone Deal initiative, with which Ukraine has relevant intergovernmental agreements, will be able to purchase Ukrainian arms and military technologies directly and cooperate with Ukrainian manufacturers.
A transparent procedure for reviewing export applications is also being introduced. Applications will be processed within a maximum of 30 days. The new procedure applies to the transfer of arms and defence technologies valued at 15 million hryvnyas or more.
The list of partner states will be drawn up by the Ministry of Foreign Affairs of Ukraine, whilst the list of critically important goods not subject to export will be determined by the Ministry of Defence in conjunction with other authorised bodies.
Particular attention has been paid to the protection of Ukrainian technologies. The transfer of products will take place without the transfer of intellectual property rights.
Re-export or transfer to third countries will only be possible with Ukraine’s written consent. Furthermore, if products manufactured using Ukrainian technologies are exported to third countries, 20 per cent of their value will be paid into the state budget.
Fedorov emphasised that the needs of the Ukrainian Defence Forces remain the overriding priority.
Exports will be permitted only if the needs of the Defence Forces are fully met. If the state requires a particular type of weaponry, permission for its export may not be granted. At the same time, manufacturers will be able to fulfil export contracts provided they simultaneously meet the requirements of the state defence order.
“Reopening exports is another step towards developing the Ukrainian defence industry and strengthening the economy. The stronger Ukrainian manufacturers become, the more advanced technologies the Defence Forces will receive,” the Defence Minister emphasised.
- Arms exports from Ukraine have been banned since the start of the full-scale war. Ukrainian manufacturers were permitted to produce goods solely for the state’s needs and were not allowed to sell them abroad.
- Moreover, some companies have production capacities that far exceed the requirements of the front line. Earlier this year, the Ukrainian authorities announced plans for “controlled” arms exports. Under this approach, private manufacturers will only be permitted to sell weapons to countries with which agreements have been concluded at the governmental level. Zelenskyy explained that the same principle applies to Ukraine: it cannot simply conclude an agreement with a foreign arms manufacturer; such a deal must first be approved by the relevant national authorities.
- According to estimates by the National Security and Defence Council, Ukrainian arms exports could generate billions of dollars this year.