Ukraine is opening up exports of defence technologies

Anna Kramarenko
Anna Kramarenko Editor-in-Chief
Ukraine is opening up exports of defence technologies
Ukraine’s exports of defence technologies
The government is launching a special mechanism for the controlled export of Ukrainian weapons and defence technologies.

Defence Minister Mykhailo Fedorov announced the approval of the new mechanism.

According to him, this decision was taken in fulfilment of a task set by the President – the procedure, introduced for the first time, establishes uniform rules for the state, manufacturers and international partners.

“Ukraine is opening up transparent exports of defence technologies to partner countries,” the minister emphasised.

The new procedure stipulates that countries which join the Drone Deal initiative and have the relevant intergovernmental agreements with Ukraine will be able to purchase Ukrainian weapons and technology directly from domestic manufacturers.

A transparent procedure for reviewing export applications is also being introduced. These will be considered within a specified timeframe – up to 30 days. The mechanism will apply to the transfer of arms and defence technologies valued at 15 million hryvnias or more. The list of partner states will be drawn up by the Ministry of Foreign Affairs of Ukraine. At the same time, the list of critically important goods that may not be transferred abroad will be determined by the Ministry of Defence in conjunction with other authorised bodies.

The new mechanism places particular emphasis on the protection of Ukrainian defence developments. The transfer of technology will take place without the transfer of intellectual property rights. The re-export of products or their transfer to third parties 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. In this way, the state aims both to support the development of the industry and to retain control over the use of its own defence developments.

The most important condition of the new mechanism remains ensuring the needs of the Ukrainian armed forces are met. Exports will only be permitted once the state has guaranteed that the Defence Forces are supplied with the necessary armaments. If a particular type of product is required by the army, permission to export it may not be granted.

At the same time, manufacturers will be able to fulfil international orders provided they simultaneously ensure the fulfilment of state contracts. According to Fedorov, Ukrainian defence technology has already proven its effectiveness on the battlefield, and the main task now is to create the conditions for expanding production, entering new markets and attracting international investment without compromising the priority of supplying Ukrainian defenders.

As a reminder, the Ukrainian Ministry of Defence had previously called on the EU to allocate €6.6 billion in military aid to Kyiv.

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