Ukraine launches special mechanism of controlled exports of domestically produced weapons and defense technologies

Ukraine is launching controlled exports of domestically produced weapons and defense technologies through a new government mechanism, announced Prime Minister of Ukraine Yulia Svyrydenko.

“Every export contract must serve one strategic goal: strengthening Ukraine’s defense industrial base and delivering more weapons for our Armed Forces,” stressed the Head of Government.

The Prime Minister added 20% of proceeds from exports of finished defense products and technologies, and 30% from exports of components, would be channelled to a special state budget fund dedicated to developing Ukraine’s defense industry.

The minimum contract value for finished products is UAH 15 million. This threshold does not apply to components.

“The mechanism will operate throughout the period of martial law and establishes transparent rules for exports to partner countries under the Drone Deal framework. At the same time, the needs of Ukraine’s Defense Forces remain the absolute priority,” told Yulia Svyrydenko.

Only if a manufacturer can demonstrate its ability to fulfill both state defense orders and export contracts simultaneously, exports will be authorized. Authorization may be denied if the Ministry of Defense or another state customer intends to procure the same products for Ukraine’s defense needs, or if the item is included on the List of critical defense goods.

The Ministry of Defense shall update the List of critical goods and technologies every quarter, while the Ministry of Foreign Affairs shall maintain the list of countries eligible to receive Ukrainian defense exports.

“We also protect Ukrainian technologies. They will be transferred without assigning intellectual property rights and will remain subject to controls on their use and re-export. Today, more than 50% of the weapons used on the battlefield are made in Ukraine, and Ukrainian defense manufacturers continue to expand production of drones, electronic warfare systems, ammunition, components, and other critical defense technologies,” explained the Head of Government.